Deadly Embrace: Sovereign and Financial Balance Sheets Doom Loops
نویسندگان
چکیده
منابع مشابه
Costs of financial instability, household-sector balance sheets and consumption
The literature on costs of financial instability tends to focus on fiscal costs and the impact on GDP of banking crises. In this paper we analyse the effect of a banking or currency crisis on consumption. We show that consumption plays an important role in the macroeconomic adjustment following a financial crisis. Furthermore, the effect of a crisis is aggravated by high leverage, notably as sh...
متن کاملBalance Sheets, the Transfer Problem, and Financial Crises
In a world of high capital mobility, the threat of speculative attack becomes a central issue of macroeconomic policy. While “first-generation” and “second-generation” models of speculative attacks both have considerable relevance to particular financial crises of the 1990s, a “third-generation” model is needed to make sense of the number and nature of the emerging market crises of 1997–98. Mos...
متن کاملMetabolic balance sheets.
toichiometric analysis has the same function in biochemistry as book-keeping has in business. Both deal with the inputs and outputs in flow systems, and studying the stoichiometric structure of a metabolic network might seem only slightly more exciting than a visit to an accountant's office. Times change, however, and progress in systems biology will involve paying closer attention to stoichiom...
متن کاملFinancial Integration and International Business Cycle Co-Movement: The Role of Balance Sheets
Abstract This paper investigates the effect of international financial integration on international business cycle co-movement. We first show with a reduced form empirical approach how capital market integration (equity) has a negative effect on business cycle co-movement while credit market integration (debt) has a positive effect. We then construct a model that can replicate these empirical r...
متن کاملDebt and Money: Financial Contraints and Sovereign Finance∗
Economic analyses of of corporate finance, money, and sovereign debt are largely considered separately. I introduce a novel corporate finance framing that focuses on financial constraints at corporate and country levels, making explicit the tradeoffs involved in relying on domestic versus foreign-currency debt to finance investments or government expenditures. The new framework provides new ins...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: The Review of Economic Studies
سال: 2017
ISSN: 0034-6527,1467-937X
DOI: 10.1093/restud/rdx059