We show that macroprudential regulation significantly dampens the impact of global
financial shocks on emerging markets. Specifically, a tighter level of regulation reduces the …

Many central banks have relied on a range of policy tools, including foreign exchange
intervention (FXI) and capital flow management tools (CFMs), to mitigate the effects of …

This paper is a partial exploration of mechanisms through which global factors influence the
tradeoffs that US monetary policy faces. It considers three main channels. The first is the …

We develop a microfounded New Keynesian model to analyze monetary policy and financial
stability issues in open economies with financial fragilities and weakly anchored inflation …

Chapter 3 establishes a key result of the book: inequality raises the odds that a growth spell
will come to an end. A lot of the technical work in this chapter is therefore concerned with …

We show that “preemptive” capital flow management measures (CFM) can reduce emerging
markets and developing countries'(EMDE) external finance premia during risk-off shocks …

This paper develops a New Keynesian model with sovereign default risk (NK-Default). We
focus on the interaction between monetary policy, conducted according to an interest rate …

We analyze how capital flows into the sovereign debt market affect government bond prices,
liquidity, and exchange rates. To address endogeneity concerns, we construct a measure of …

This paper revisits the link between FDI and economic growth in emerging and developing
economies. Analysis of the early decades of the sample shows that there is no statistically …

We quantify the importance of the Global Financial Cycle (GFCy) in domestic credit and
various local asset prices and compare it with that in capital flows. Using 2000-2021 data for …