05076oam 22012974 450 991082218010332120240410162833.01-4623-3770-81-4527-0878-91-283-51818-X1-4519-0869-59786613830630(CKB)3360000000443987(EBL)3014509(SSID)ssj0000940052(PQKBManifestationID)11518979(PQKBTitleCode)TC0000940052(PQKBWorkID)10946751(PQKB)11219631(OCoLC)694141199(IMF)WPIEE2006073(MiAaPQ)EBC3014509(EXLCZ)99336000000044398720020129d2006 uf 0engur|n|---|||||txtccrAre Asset Price Guarantees Useful for Preventing Sudden Stops?A Quantitative Investigation of the Globalization Hazard-Moral Hazard Tradeoff /Enrique Mendoza, Ceyhun Bora Durdu1st ed.Washington, D.C. :International Monetary Fund,2006.1 online resource (42 p.)IMF Working Papers"March 2006."1-4518-6333-0 Includes bibliographical references.""Contents""; ""I. INTRODUCTION""; ""II. A MODEL OF GLOBALIZATION HAZARD AND PRICE GUARANTEES""; ""III. CHARACTERIZING THE GLOBALIZATION HAZARD-MORAL HAZARD TRADEOFF""; ""IV. QUANTITATIVE ANALYSIS""; ""V. NORMATIVE IMPLICATIONS AND SENSITIVITY ANALYSIS""; ""VI. CONCLUSIONS""; ""REFERENCES""An implication of the "globalization hazard" hypothesis is that sudden stops could be prevented by offering foreign investors price guarantees on emerging markets assets. These guarantees create a tradeoff, however, because they weaken globalization hazard by creating international moral hazard. We study this tradeoff using an equilibrium asset-pricing model. Without guarantees, margin calls and trading costs cause Sudden Stops driven by Fisher's debt-deflation process. Price guarantees prevent this deflation by propping up foreign asset demand, but their effectiveness and welfare implications depend critically on the price elasticity of foreign demand and on making the guarantees contingent on debt levels.IMF Working Papers; Working Paper ;No. 2006/073Economic policyGlobalizationExports and ImportsimfFinance: GeneralimfInvestments: StocksimfMacroeconomicsimfInternational InvestmentimfLong-term Capital MovementsimfPension FundsimfNon-bank Financial InstitutionsimfFinancial InstrumentsimfInstitutional InvestorsimfPrice LevelimfInflationimfDeflationimfMacroeconomics: ConsumptionimfSavingimfWealthimfGeneral Financial Markets: Government Policy and RegulationimfInternational economicsimfInvestment & securitiesimfFinanceimfSudden stopsimfStocksimfAsset pricesimfConsumptionimfMoral hazardimfCapital movementsimfPricesimfEconomicsimfFinancial risk managementimfMexicoimfEconomic policy.Globalization.Exports and ImportsFinance: GeneralInvestments: StocksMacroeconomicsInternational InvestmentLong-term Capital MovementsPension FundsNon-bank Financial InstitutionsFinancial InstrumentsInstitutional InvestorsPrice LevelInflationDeflationMacroeconomics: ConsumptionSavingWealthGeneral Financial Markets: Government Policy and RegulationInternational economicsInvestment & securitiesFinanceSudden stopsStocksAsset pricesConsumptionMoral hazardCapital movementsPricesEconomicsFinancial risk managementMendoza Enrique119545Durdu Ceyhun Bora1169974International Monetary Fund.Research Dept.DcWaIMFBOOK9910822180103321Are Asset Price Guarantees Useful for Preventing Sudden Stops?A Quantitative Investigation of the Globalization Hazard-Moral Hazard Tradeoff4118745UNINA