[PDF] Controlling Currency Mismatches In Emerging Markets eBook

Author : Morris Goldstein
Publisher : Columbia University Press
Page : 181 pages
File Size : 36,31 MB
Release : 2004-04-25
Category : Business & Economics
ISBN : 0881324574

GET BOOK

In most of the currency crises of the 1990s, the largest output falls have occurred in those emerging economies with large currency mismatches, a phenomenon that occurs when assets and liabilities are denominated in different currencies such that net worth is sensitive to changes in the exchange rate. Currency mismatching makes crisis management much more difficult since it constrains the willingness of the monetary authority to reduce interest rates in a recession (for fear of initiating a large fall in the currency that would bring with it large-scale insolvencies). The mismatching also produces a "fear of floating" on the part of emerging economies, sometimes inducing them to make currency-regime choices that are not in their own long-term interest. Authors Morris Goldstein and Philip Turner summarize what is known about the origins of currency mismatching in emerging economies, discuss how best to define and measure currency mismatching, and review policy options for reducing the size of the problem.

Author : Barry Eichengreen
Publisher : University of Chicago Press
Page : 306 pages
File Size : 15,76 MB
Release : 2010-04-15
Category : Business & Economics
ISBN : 0226194574

GET BOOK

Recent crises in emerging markets have been heavily driven by balance-sheet or net-worth effects. Episodes in countries as far-flung as Indonesia and Argentina have shown that exchange rate adjustments that would normally help to restore balance can be destabilizing, even catastrophic, for countries whose debts are denominated in foreign currencies. Many economists instinctually assume that developing countries allow their foreign debts to be denominated in dollars, yen, or euros because they simply don't know better. Presenting evidence that even emerging markets with strong policies and institutions experience this problem, Other People's Money recognizes that the situation must be attributed to more than ignorance. Instead, the contributors suggest that the problem is linked to the operation of international financial markets, which prevent countries from borrowing in their own currencies. A comprehensive analysis of the sources of this problem and its consequences, Other People's Money takes the study one step further, proposing a solution that would involve having the World Bank and regional development banks themselves borrow and lend in emerging market currencies.

Author : Morris Goldstein
Publisher : World Scientific Publishing Company
Page : 772 pages
File Size : 29,41 MB
Release : 2017
Category : Business & Economics
ISBN : 9789814749572

GET BOOK

Foreign trade -- Income and price effects in foreign trade / by Morris Goldstein and Mohsin S. Khan -- The supply and demand for exports : a simultaneous approach / by Morris Goldstein and Mohsin S. Khan -- Prices of tradable and nontradable goods in the demand for imports / by Morris Goldstein, Mohsin S. Khan, and Lawrence H. Officer -- Currency regimes, exchange rate policy, and international policy coordination -- Market-based fiscal discipline in monetary unions : evidence from the US municipal bond market / by Morris Goldstein and Geoffrey Woglom -- A guide to target zones / by Jacob A. Frenkel and Morris Goldstein -- Managed floating plus / by Morris Goldstein -- The rationale for, and effects of, international policy coordination / by Jacob A. Frenkel, Morris Goldstein, and Paul R. Masson -- Banking, financial crises, and financial regulation -- Banking crises in emerging economies : origins and policy options / by Morris Goldstein and Philip Turner -- An international banking standard : the time is ripe / by Morris Goldstein -- Origins of the crisis / by Morris Goldstein -- Methodology and empirical results / by Morris Goldstein, Graciela Kaminsky and Carmen Reinhart -- Measuring currency mismatch and aggregate effective currency mismatch / by Morris Goldstein and Philip Turner -- The case for an orderly resolution regime for systemically-important financial institutions / by Rodgin Cohen and Morris Goldstein -- The 2014 eu-wide bank stress test lacks credibility / by Morris Goldstein -- Imf policies -- Evaluating fund stabilization programs with multi country data : some methodological pitfalls / by Morris Goldstein and Peter Montiel -- Imf structural programs / by Morris Goldstein -- The fund appears to be sleeping at the wheel / by Morris Goldstein and Michael Mussa -- Currency manipulation and enforcing the rules of the international monetary system / by Morris Goldstein -- China's exchange rate policies -- Two-stage currency reform for China / by Morris Goldstein and Nicolas Lardy -- China's exchange rate policy dilemma / by Morris Goldstein and Nicholas Lardy -- Challenges facing the chinese authorities under the existing currency regime / by Morris Goldstein and Nicholas Lardy

Author : Herman Kamil
Publisher : International Monetary Fund
Page : 54 pages
File Size : 46,76 MB
Release : 2012-03-01
Category : Business & Economics
ISBN : 1463950233

GET BOOK

Using a unique dataset with information on the currency composition of firms' assets and liabilities in six Latin-American countries, I investigate how the choice of exchange rate regime affects firms' foreign currency borrowing decisions and the associated currency mismatches in their balance sheets. I find that after countries switch from pegged to floating exchange rate regimes, firms reduce their levels of foreign currency exposures, in two ways. First, they reduce the share of debt contracted in foreign currency. Second, firms match more systematically their foreign currency liabilities with assets denominated in foreign currency and export revenues--effectively reducing their vulnerability to exchange rate shocks. More broadly, the study provides novel evidence on the impact of exchange rate regimes on the level of un-hedged foreign currency debt in the corporate sector and thus on aggregate financial stability.

Author : Ross P. Buckley
Publisher : Kluwer Law International B.V.
Page : 218 pages
File Size : 19,85 MB
Release : 2009-01-01
Category : Law
ISBN : 9041128689

GET BOOK

Provides deep analyses of some of the devastating financial crises of the last quarter-centures by showing how such factors as the origins and destinations of loans, bank behaviour, bad timing, ignorance of history, trade regimes, capital flight, and corruption coalesce under certain circumstances to trigger a financial crash.

Author : Mr.Romain Ranciere
Publisher : International Monetary Fund
Page : 27 pages
File Size : 17,28 MB
Release : 2010-11-01
Category : Business & Economics
ISBN : 1455210706

GET BOOK

This paper constructs a new measure of currency mismatch in the banking sector that controls for bank lending to unhedged borrowers. This measure explicitly takes into account the indirect exchange rate risk that banks undertake when they lend to borrowers that will not be able to repay in the event of a sharp depreciation. Such systemic risk taking is not captured by indicators that are based only on banks’ balance sheet data. The new measure is constructed for 10 emerging European economies and for a broader sample that includes 19 additional emerging economies, for the period 1998 - 2008. Comparisons with previous currency mismatch measures that do not adjust for unhedged foreign currency borrowing illustrate the advantages of the new approach. In particular, the new measure flagged the indirect currency mismatch vulnerabilities that were building up in a number of emerging economies before the recent global crisis. Measuring currency mismatch more accurately can help country authorities in their efforts to address vulnerabilities at the right time, avoiding hurting growth prospects.