Department of Economics
University of Virginia
Monroe Hall, Suite 222
Charlottesville, VA 22903
NBER Program Affiliations:
NBER Affiliation: Research Associate
Institutional Affiliation: University of Virginia
Information about this author at RePEc
NBER Working Papers and Publications
|February 2019||Global Collateral and Capital Flows|
with John Geanakoplos, Gregory Phelan: w25583
Cross-border financial flows arise when (otherwise identical) countries differ in their abilities to use assets as collateral to back financial contracts. Financially integrated countries have access to the same set of financial instruments, and yet there is no price convergence of assets with identical payoffs, due to a gap in collateral values. Home (financially advanced) runs a current account deficit. Financial flows amplify asset price volatility in both countries, and gross flows driven by collateral differences collapse following bad news about fundamentals. Our results can explain financial flows among rich, similarly-developed countries, and why these flows increase volatility.
|June 2007||Latin America's Access to International Capital Markets: Good Behavior or Global Liquidity?|
with Graciela Laura Kaminsky: w13194
This paper examines Latin America's access to international capital markets from 1980 to 2005, with particular attention to the role of domestic and external factors. To capture access to international markets, we use primary gross issuance in international bond, equity, and syndicated-loan markets. Using panel estimation, we find that sound fundamentals matter. For example, Argentina, Brazil, and Chile's superb performance in capital markets during the early 1990s has been in large part driven by better fundamentals. However, the upsurge in international lending to Latin America starting in 2003 has been mainly driven by a dramatic increase in global liquidity.
Published: Ana Fostel & Graciela Laura Kaminsky, 2008.
"Latin America´s Access to International Capital Markets: Good Behavior or Global Liquidity?,"
Central Banking, Analysis, and Economic Policies Book Series,
in: Kevin Cowan & Sebastián Edwards & Rodrigo O. Valdés & Norman Loayza (Series Editor) & Klaus Schmid (ed.), Current Account and External Financing, edition 1, volume 12, chapter 4, pages 117-158
Central Bank of Chile.