Exchange Rates and Financial Fragility}, year = {1999}} Share. We examine the evidence on these hypotheses and draw out their implications for exchange-rate policy in emerging markets. Rebelo, Sergio T. Repository Usage Stats. Exchange-Rate Derivatives, Financial Fragility and Monetary Policy in Brazil during the World Financial Crisis. Exchange-Rate Derivatives, Financial Fragility and Monetary Policy in Brazil during the World Financial Crisis. It is a key determinant of the response of local interest rates to global credit conditions. contribute. The banking system, the exchange rate regime, and central bank credit policy are seen as parts of a mechanism intended to maximize social welfare; if the mechanism fails, banking crises and speculative attacks become possible. Abstract. Software Components, EconPapers FAQ Specifically, Schulmeister (2009) focus on Regime’. 982 downloads . In: Arestis P., Troncoso Baltar C., Prates D. (eds) The Brazilian Economy since the Great Financial Crisis of 2007/2008. Is your work missing from RePEc? Financial Fragility, Exchange-Rate Regimes, and Sudden Stops in a Small Open Economy ♦ @inproceedings{Wang2012FinancialFE, title={Financial Fragility, Exchange-Rate Regimes, and Sudden Stops in a Small Open Economy ♦}, author={G. Wang and Paula L. Hernandez-Verme and Raymond A. K. Cox}, year={2012} } Euromoney 1996 Euromoney, 1996. Mexico's Crisis: Financial Modernization and Financial Fragility 169 the real exchange rate (e) (all adjusted for means and ranges). If one positive thing can be said about the Asian crisis and subsequent discussions of how to strengthen the international financial architecture, it is that they breathed new life into a moribund debate on the consequences of exchange-rate arrangements. Abstract. To that extent, a small change in macroeconomic variables (inflation rate, interest rate and exchange rate) can trigger a large swing in prices. Euromoney 1991 Euromoney, 1991. By Barry Eichengreen and Ricardo Hausmann. Abstract. Heterodox exchange -rate literature disagrees with the view of exchange rates as market -clearing. ... Second, banks do not hedge their exchange rate risk. Burnside, A Craig. Finally, when the currency/banking collapse occurs interest rates rise and there is a persistent decline in output. Note: IFM Cookies at EconPapers, The RePEc blog Find more information about: OCLC Number: 41884164: … Google Scholar. If one positive thing can be said about the Asian crisis and subsequent discussions of how to strengthen the international financial architecture, it is that they breathed new life into a moribund debate on the consequences of exchange-rate arrangements. Barry Eichengreen & Ricardo Hausmann, 1999. [Craig Burnside; Martin S Eichenbaum; Sergio Rebelo; National Bureau of Economic Research.] A fixed exchange rate also may induce greater financial discipline on the part of the authorities since it places their foreign reserve holdings at risk. AU - Rebelo, Sergio. Ia ,MF (1 98 p g 35) page 21) for a discussion of guarantees in Thailand, Malaysia, Indonesia and Korea as well as Delhaise (1998). The following peculiarities stand out. –Robert M. Solow 1. relatively little effect in the presence of financial fragility and poor fundamentals. Hedging and Financial Fragility in Fixed Exchange Rate Regimes. EconPapers Home Related works:Journal Article: Exchange rates and financial fragility (1999) This item may be available elsewhere in EconPapers: Search for items with the same title. Abstract. Ricardo Hausmann (Obfuscate( 'harvard.edu', 'ricardo_hausmann' )), No 7418, NBER Working Papers from National Bureau of Economic Research, Inc. Abstract: We examine the evidence on these hypotheses and draw out their implications for exchange-rate policy in emerging markets. Abstract. Eichenbaum, Martin. While the relationship between firm-leverage and distress scores varies over time, the relationship between firm size and corporate vulnerability is relatively time-invariant. Journal Articles We study financial fragility, exchange rate crises, and monetary policy in an open economy version of a Diamond-Dybvig model. Exchange Rates and Financial Fragility. First, banks have a currency mismatch between their assets and liabilities. Eichenbaum, Martin. Y1 - 2001/6/23. Financial Fragility and the Exchange Rate Regime Roberto Chang and Andres Velasco Federal Reserve Bank of Atlanta Working Paper 97-16 November 1997 Abstract: We study financial fragility, exchange rate crises, and monetary policy in an open economy version of a Diamond-Dybvig model. Books and Chapters AU - Burnside, Craig. Third, there is a lending boom before the crises. 1. T1 - Hedging and financial fragility in fixed exchange rate regimes. Currency crises that coincide with banking crises tend to share at least three elements. When the fixed exchange rate is abandoned in favor of a crawling peg, banks go bankrupt, the domestic interest rate rises, real wages fall, and output declines. 2001-06-23 Authors. First, banks have a currency mismatch between their assets and liabilities. Abstract. exchange rate and financial fragility. AU - Eichenbaum, Martin. The banking system, the exchange rate regime, and central bank credit policy are seen as parts of a mechanism intended to maximize social welfare; if the mechanism fails, banking crises and speculative attacks become possible. Flavio Basilio . Barry Eichengreen and Ricardo Hausmann () . JEL Nos : F31 Keywords : Banks, credibility, exchange rates, inflation, interest rates HTML/Text, Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:7418, Ordering information: This working paper can be ordered fromhttp://www.nber.org/papers/w7418. "Hedging and financial fragility in fixed exchange rate regimes," Working Paper Series WP-99-11, Federal Reserve Bank of Chicago. We study financial fragility, exchange rate crises, and monetary policy in a model of an open economy with Diamond–Dybvig banks. Financial development and better quality of regulatory frameworks and supervision tend to dampen these adverse effects. Date. Published as Barry Eichengreen & Ricardo Hausmann, 1999. N2 - Currency crises that coincide with banking crises tend to share at least three elements. Euromoney Publications PLC, London. 982 downloads. Suggested Citation: Suggested Citation Burnside, Craig and Eichenbaum, Martin and Tavares Rebelo, Sergio, Hedging and Financial Fragility in Fixed Exchange Rate Regimes (May 1999). Downloads: (external link)http://www.nber.org/papers/w7418.pdf (application/pdf). Proceedings - Economic Policy Symposium - Jackson Hole, 1999, 329-368 . "Hedging and Financial Fragility in Fixed Exchange Rate Regimes," NBER Working Papers 7143, National Bureau of Economic Research, Inc. A third view holds that the fundamental cause of international financial fragility is a lack of institutions to enforce contracts between parties. The banking system, the exchange rate regime, and central bank credit policy are seen as parts of a mechanism intended to Hedging and financial fragility in fixed exchange rate regimes. OpenURL . Get this from a library! N2 - Currency crises that coincide with banking crises tend to share at least three elements. The second view is the original sin hypothesis that focuses a falling in financial markets it is called “original sin”. Contact information at EDIRC.Bibliographic data for series maintained by (Obfuscate( 'nber.org', 'feenberg' )). First, governments provide guarantees to domestic and foreign bank creditors. The extent to which individual responses to household surveys are protected from discovery by outside parties depends... © 2020 National Bureau of Economic Research. 2001-06-23 Authors. Exchange rates and financial fragility. Euromoney Publications PLC, London. The banking system, the exchange rate regime, and central bank credit policy are seen as parts of a mechanism intended to maximize social welfare; if the mechanism fails, banking crises and speculative attacks become possible. the term financial fragility is used to refer to a systems’ susceptibility to large-scale financial crisis caused by small routine economic shocks (Allen and Gala, 2004). Exchange Rates and Financial Fragility . Introduction If one positive thing can be said about the Asian crisis and subsequent discussions of how to strengthen the international financial architecture, it is that they breathed new life into a moribund debate on the consequences of exchange-rate arrangements. The financial system is characterized by bank dominance and lending externality – banks do not internalize the effect of their lending on other banks’ information about potential borrowers. Exchange Rate Regime on Financial Fragility Maxim Nikitin International College of Economics and Finance SU-HSE, Moscow, Russia mnikitin@hse.ru Alexandra Solovyeva Central Bank of Russia Moscow, Russia September 02, 2010 Abstract We study the impact on nancial fragility of globalization and a switch from managed to Hedging and financial fragility in fixed exchange rate regimes. Foreign Exchange (FX) rates have always been at the core of emerging countries crisis. By Barry Eichengreen and Ricardo Hausmann. Barry Eichengreen and Ricardo Hausmann () . Interactions between banks and open capital account are investigated as rationalizations for empirical regularities characterizing disinflation programs anchored by the exchange rate. 275 views. Craig Burnside & Martin Eichenbaum & Sergio Rebelo, 1999. Export reference: BibTeX JEL Nos : F31 Keywords : Banks, credibility, exchange rates, inflation, interest rates. NBER Working Paper No. Örebro University School of Business. The exchange rate has an important influence on the volume capital flows. AU - Burnside, Craig. exposure to foreign exchange losses and dependence on the exchange rate as a nominal anchor both raise the cost of (and resistance to) devaluation, this has relatively little effect in the presence of financial fragility and poor fundamentals. PY - 2001/6/23. When does the combination of flexible exchange rates and domestic inflation-oriented monetary policy guarantee insulation from global financial conditions? The banking system, the exchange rate regime, and central bank credit policy are seen as parts of a mechanism intended to maximize social welfare; if the mechanism fails, banking crises and speculative attacks on the currency become possible. By Barry Eichengreen and Ricardo HausmannBarry Eichengreen and Ricardo Hausmann. "Hedging and financial fragility in fixed exchange rate regimes," Working Paper Series WP-99-11, Federal Reserve Bank of Chicago. -- Abstract: Currency crises that coincide with banking crises tend to share four elements. Date: 1999-11 "Hedging and Financial Fragility in Fixed Exchange Rate Regimes," NBER Working Papers 7143, National Bureau of Economic Research, Inc. Craig Burnside & Martin Eichenbaum & Sergio Rebelo, 1999. National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Instead, expectations of investors Õ decisions on financial investments have a key role in driving exchange rates and they are anchored in social conventions given the weight of fundamental uncertainty. Exchange Rates and Financial Fragility Barry Eichengreen, Ricardo Hausmann. EconPapers is hosted by the "Exchange rates and financial fragility," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 329-368. citation courtesy of. Exchange rates and financial fragility. Cambridge, MA : National Bureau of Economic Research, ©1999 (OCoLC)648556229: Material Type: Internet resource: Document Type: Book, Internet Resource: All Authors / Contributors: Craig Burnside; Martin S Eichenbaum; Sergio Rebelo; National Bureau of Economic Research. Abstract. Exchange Rates and Financial Fragility . Farhi M. (2017) Foreign Exchange Derivatives and Financial Fragility in Brazil. Get PDF (635 KB) Abstract. We study financial fragility, exchange rate crises, and monetary policy in a model of an open economy with Diamond–Dybvig banks. The second view is the original sin hypothesis that focuses a falling AU - Rebelo, Sergio. 275 views. 2 1. It is a key determinant of the response of localinterestratestoglobalcreditconditions. We compare currency boards, fixed rates, and flexible rates with and without a lender of last resort. Archive maintainers FAQ Borio and Disyatat (2011) use the term “excess elasticity” to refer to this expansion of the financial system in good times. 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