Are Asset Price Guarantees Useful for Preventing Sudden Stops?A Quantitative Investigation of the Globalization Hazard-Moral Hazard Tradeoff / / Enrique Mendoza, Ceyhun Bora Durdu
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| Autore: |
Mendoza Enrique
|
| Titolo: |
Are Asset Price Guarantees Useful for Preventing Sudden Stops?A Quantitative Investigation of the Globalization Hazard-Moral Hazard Tradeoff / / Enrique Mendoza, Ceyhun Bora Durdu
|
| Pubblicazione: | Washington, D.C. : , : International Monetary Fund, , 2006 |
| Edizione: | 1st ed. |
| Descrizione fisica: | 1 online resource (42 p.) |
| Soggetto topico: | Economic policy |
| Globalization | |
| Asset prices | |
| Capital movements | |
| Consumption | |
| Deflation | |
| Economics | |
| Exports and Imports | |
| Finance | |
| Finance: General | |
| Financial Instruments | |
| Financial risk management | |
| General Financial Markets: Government Policy and Regulation | |
| Inflation | |
| Institutional Investors | |
| International economics | |
| International Investment | |
| Investment & securities | |
| Investments: Stocks | |
| Long-term Capital Movements | |
| Macroeconomics | |
| Macroeconomics: Consumption | |
| Moral hazard | |
| Non-bank Financial Institutions | |
| Pension Funds | |
| Price Level | |
| Prices | |
| Saving | |
| Stocks | |
| Sudden stops | |
| Wealth | |
| Soggetto geografico: | Mexico |
| Altri autori: |
DurduCeyhun Bora
|
| Note generali: | "March 2006." |
| Nota di bibliografia: | Includes bibliographical references. |
| Nota di contenuto: | ""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"" |
| Sommario/riassunto: | 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. |
| Titolo autorizzato: | Are Asset Price Guarantees Useful for Preventing Sudden Stops?A Quantitative Investigation of the Globalization Hazard-Moral Hazard Tradeoff |
| ISBN: | 1-4623-3770-8 |
| 1-4527-0878-9 | |
| 1-283-51818-X | |
| 1-4519-0869-5 | |
| 9786613830630 | |
| Formato: | Materiale a stampa  |
| Livello bibliografico | Monografia |
| Lingua di pubblicazione: | Inglese |
| Record Nr.: | 9910822180103321 |
| Lo trovi qui: | Univ. Federico II |
| Opac: | Controlla la disponibilità qui |
Serie:
IMF Working Papers; Working Paper ; ; No. 2006/073