It is often argued that many economies are affected by conditions in foreign countries. This
paper explores the connection between interest rates in major industrial countries and …

For decades, free trade was advocated as the vehicle for peace, prosperity, and democracy
in an increasingly globalized market. More recently, the proliferation of foreign direct …

Studies suggest that firms navigating an economic shock can adapt and improve
performance by targeting perceived growth opportunities. A puzzle, however, is that an …

This paper creates an index of capital controls to analyze the determinants of capital flows to
Brazil, accounting for the endogeneity of capital controls by considering a government that …

Using maximum likelihood Kalman filtering techniques and non-parametric variance ratio
statistics, we gauge the relative importance of permanent and temporary components of …

A fundamental determinant of the macroeconomic properties of an economy is its degree of
financial integration with the outside world. Yet very little is known about this characteristic of …

This paper assesses empirically the key drivers of private capital flows to a large sample of
emerging market economies in the last decade. It analyzes the effect of the global financial …

House price bubbles, and their aftermath, have become a focus of macro-economic policy
concern in most developed countries. This book elucidates the two-way relationship …

The literature has identified three main approaches to account for the way exchange rate
regimes are chosen:(i) the optimal currency area theory;(ii) the financial view, which …

As the recent Mexican crisis vividly illustrates, Latin American countries often go through
boom-bust cycles caused by both domestic policies and external shocks. Such cycles are …