International Monetary Fund
Western Hemisphere Department
700 19th Street, NW
Washington DC, 20431
Institutional Affiliation: International Monetary Fund
NBER Working Papers and Publications
|November 2010||What Hinders Investment in the Aftermath of Financial Crises: Insolvent Firms or Illiquid Banks?|
with Sebnem Kalemli-Ozcan, Carolina Villegas-Sanchez: w16528
We quantify the effects of lending and balance sheet channels on corporate investment during large crises in emerging markets. The depreciated currency creates investment opportunities in the tradable sector but firms might be financially constrained due to: 1) a deterioration of their balance sheet via un-hedged foreign currency debt (balance sheet channel) and 2) a decline in the supply of credit by banks (lending channel). We find that during twin crises, domestic exporters holding un-hedged foreign currency debt decrease investment while foreign exporters with better access to credit increase investment, in spite of their un-hedged foreign currency debt. We do not find such a differential effect under pure currency crises. Using firm-bank matched data during global financial crisis, we...
Published: Sebnem Kalemli-Ozcan & Herman Kamil & Carolina Villegas-Sanchez, 2016. "What Hinders Investment in the Aftermath of Financial Crises: Insolvent Firms or Illiquid Banks?," Review of Economics and Statistics, vol 98(4), pages 756-769. citation courtesy of
|November 2002||Cross-Border Trading as a Mechanism for Capital Flight: ADRs and the Argentine Crisis|
with Sebastian Auguste, Kathryn M.E. Dominguez, Linda L. Tesar: w9343
This paper examines the surprising performance of the Argentine stock market in the midst of the country's most recent financial crisis and the role played by ADRs in Argentine capital flight. Although Argentine investors were subject to capital controls, they were able to purchase stocks with associated ADRs for pesos in Argentina, convert them into ADRs, re-sell them in New York for dollars and deposit the dollar proceeds in U.S. bank accounts. In the paper we show that: (1) ADR discounts went as high as 60% (indicating that Argentine investors were willing to pay significant amounts in order to legally move their funds abroad), (2) the market anticipated (correctly) a 40% devaluation, (3) local market factors in Argentina became more important in pricing peso denominated stocks with as...
Published: Journal of Monetary Economics, 53, 2006, 1259-1295