In this paper I deal with a number of issues related to financial instability in Latin America. I first discuss, from a macroeconomic research perspective, what I believe are some of the most important policy issues faced by the Latin American nations. These include the effectiveness of controls on capital inflows, the effect of exchange rate depreciation on output, and the international transm...

This paper considers a developing nation that faces a foreign exchange shortage and hence its demand for foreign goods is limited both by its income and its foreign exchange balance. Availability of international credit relaxes the second constraint. We develop a simple model of strategic interaction between lending institutions and firms, and show that the availability of international credit ...

Emerging economies are often exposed to sudden shortages of international financial resources. Yet domestic agents do not seem to take preventive measures against these sudden stops. We highlight the central role played by the limited development of ex ante (insurance) and ex post (spot) domestic financial markets in generating this collective undervaluation of international resources. We study...

Existing studies using low-frequency data show that macroeconomic shocks contribute little to international stock market covariation. Those studies, however, do not account for the presence of asymmetric information, where sophisticated investors generate private information about the fundamentals that drive returns in many countries. In this paper, the authors use a new microstructure data set...

This paper provides clear cut evidence that the slope and curvature factors of the yield curve contain more information about future changes in economic activity than the term spread alone, often used in practice as an indicator of future economic conditions. These two factors constitute independent sources of information about future economic activity, which are o¤set to each other in term spr...

This paper fist examines three set of bivariate cointegrations between any two of current accounts, stock markets, and currency exchange markets in ten Asian countries. Furthermore, we examined the effect of country characters on this bivariate cointegration. Our findings suggest that for three sets of cointegration test, each sample country at least exists one cointegration. India consistently...

This paper evaluates the relative importance of three contagion channels: direct trade, neighborhood effects and financial competition in banking centers. Because these channels are highly correlated, they could easily be confused. However, policy implications are very different depending on the channel and therefore disentangle which channels are more relevant is an important task. This paper ...

This study examines the proposition that political business cycle theory is relevant to private foreign lenders to developing countries. We find that: credit rating agencies downgrade developing country ratings more often in election years, and do so by approximately one rating level; bond spreads are higher in the 60 days before an election compared to spreads in the 60 days after an election;...

This paper empirically tests the determinants of foreign currency hedging using a large sample of UK non-financial firms. I find, unlike similar studies using US data, strong evidence of a relationship between expected financial distress costs and the foreign currency hedging decision and more significantly the foreign currency only hedging decision. This contrast in the findings between this s...

Whitespotted bambooshark, Chiloscyllium plagiosum (Anonymous [Bennett], 1830), is a major shark species caught in waters off Sabah, Malaysia. Despite the massive landing amount, its biological and stock status information limited. In 2015–2016, elasmobranch data collection was conducted Southeast Asia, including Sabah. A yield-per-recruit (YPR) spawning-per-recruit (SPR) analyses were performed...