scholarly journals Systemic Sudden Stops: The Relevance of Balance-Sheet Effects and Financial Integration

2008 ◽  
Author(s):  
Guillermo A. Calvo ◽  
Alejandro Izquierdo ◽  
Luis Fernando Mejía
Keyword(s):  
Financial Integration ◽  
Balance Sheet ◽  
Sudden Stops ◽  
Balance Sheet Effects

scholarly journals Systemic Sudden Stops: The Relevance of Balance-Sheet Effects and Financial Integration

2016 ◽  
Author(s):  
Guillermo Calvo ◽  
Alejandro Izquierdo ◽  
Luis-Fernando Mejía
Keyword(s):  
Developing Countries ◽  
Critical Point ◽  
Foreign Exchange ◽  
Financial Integration ◽  
Balance Sheet ◽  
Banking System ◽  
Sudden Stop ◽  
Balance Sheet Effects ◽  
Tradable Goods ◽  
The Relationship

Using a sample of 110 developed and developing countries for the period 1990-2004, the chapter claims that a small supply of tradable goods relative to their domestic absorption, and large foreign-exchange denominated debts towards the domestic banking system, denoted Domestic Liability Dollarization, are key determinants of the probability of Systemic Sudden Stop (3S). Moreover, the larger is financial integration, the larger is likely to be the probability of 3S; however, beyond a critical point the relationship gets a sign reversion.

scholarly journals On the Empirics of Sudden Stops: The Relevance of Balance-Sheet Effects

2004 ◽  
Author(s):  
Guillermo Calvo ◽  
Alejandro Izquierdo ◽  
Luis-Fernando Mejia
Keyword(s):  
Balance Sheet ◽  
Sudden Stops ◽  
Balance Sheet Effects

scholarly journals On the Empirics of Sudden Stops: The Relevance of Balance-Sheet Effects

2004 ◽  
Author(s):  
Guillermo A. Calvo ◽  
Alejandro Izquierdo ◽  
Luis Fernando Mejía
Keyword(s):  
Balance Sheet ◽  
Sudden Stops ◽  
Balance Sheet Effects

scholarly journals Relative price volatility under Sudden Stops: The relevance of balance sheet effects

2006 ◽  
Vol 69 (1) ◽  
pp. 231-254 ◽  
Author(s):  
Guillermo A. Calvo ◽  
Alejandro Izquierdo ◽  
Rudy Loo-Kung
Keyword(s):  
Balance Sheet ◽  
Price Volatility ◽  
Sudden Stops ◽  
Relative Price ◽  
Balance Sheet Effects

scholarly journals Structural Transformation, Deep Downturns, and Government Policy

2019 ◽  
pp. 34-44
Author(s):  
Joseph E. Stiglitz
Keyword(s):  
Government Policy ◽  
Service Sector ◽  
Balance Sheet ◽  
Structural Transformations ◽  
Government Policies ◽  
Balance Sheets ◽  
The Great Depression ◽  
Balance Sheet Effects ◽  
Limited Efficacy ◽  
Economic Transformations

Most recessions are a result of some shock to the economic system, typically amplified by financial accelerators, and leading to large, persistent balance sheet effects on households and firms. Over time, however, the balance sheets get restored. Even banks recover. But episodically, the ‘shock’ is deeper. It is structural. Among advanced countries, such large economic transformations include the movement from agriculture to manufacturing (completed in the twentieth century), and the more recent movement from manufacturing to the service sector. The associated downturns are longer lasting. The usual tools for restoring growth, particularly monetary policy, are of only limited efficacy. Policies have to be designed to facilitate such transformations: markets on their own typically do not do well. This chapter explains why such transformations are associated with persistently high unemployment, and what kinds of government policies are needed. It looks at the lessons of the Great Depression both for the advanced countries and the developing countries today as they go through their structural transformations.

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