1,720,981 research outputs found
Financial crises and monetary policy
Full text linkIn the last three decades, many countries and regions around the world have suffered from currency crises. This thesis investigates the causes of such crises and assesses the role of monetary policy as a tool to avoid them or limit the damage they impose. In addition, it studies the impact of the recent introduction of credit derivatives on the resolution of debt crises. The main message of this thesis is that corporate balance sheet vulnerabilities can be an important determinant of crises. First, these vulnerabilities can erode the commitment of policymakers to maintain a fixed exchange rate by increasing the costs of doing so. Second, these vulnerabilities can also lower the extent to which monetary policy can be used to support the exchange rate
Financial Crises and Monetary Policy.
Full text linkIn the last three decades, many countries and regions around the world have suffered from currency crises. This thesis investigates the causes of such crises and assesses the role of monetary policy as a tool to avoid them or limit the damage they impose. In addition, it studies the impact of the recent introduction of credit derivatives on the resolution of debt crises. The main message of this thesis is that corporate balance sheet vulnerabilities can be an important determinant of crises. First, these vulnerabilities can erode the commitment of policymakers to maintain a fixed exchange rate by increasing the costs of doing so. Second, these vulnerabilities can also lower the extent to which monetary policy can be used to support the exchange rate.
Currency Crisis, Monetary Policy and Corporate Balance Sheet Vulnerabilities
Full text linkThis paper studies how the exposure of a country's corporate sector to interest rate and exchange rate changes affects the probability of a currency crisis.To analyze this question, we present a model that defines currency crisis as situations in which the costs of maintaining a fixed exchange rate exceed the costs of abandonment.The results show that a higher exposure to interest rate changes increaes the probability of crisis through an increased need for output loss compensation and an increased efficacy of monetary policy in stimulating output.A higher exposure to exchange rate changes also increases the need for output loss compensation.However, it lowers the efficacy of monetary policy in stimulating output through the adverse balance sheet effects of exchange rate depreciation.As a result, its effects on the probability of crisis is ambiguous
The Transnational Origins of Constituions:Evidence From a New Global Data Set On Constitional Rights
Full text linkAbstract Constitutions are commonly described as national products shaped by domestic politics. This paper develops and empirically tests a different hypothesis, which is that constitutions are also shaped by transnational influence, or “diffusion”. Constitutional rights can diffuse through four mechanisms: coercion, competition, learning and acculturation. To test diffusion, we traced the historical documents of all post-WWII constitutions and documented the presence of 108 constitutional rights. Using a sample of these rights in 180 countries between 1948 and 2001, we estimate a spatial lag model to explain their adoption. Our results show that countries follow the choices of their former colonizer, countries with the same legal origin, the same religion, the same former colonizer, and the same aid donor. We also find that diffusion explains only 3 percent of the variation in adoption. However, when a country adopts its first constitution, diffusion is much stronger and explains 46 percent of the variation
The diffusion of constitutional rights
No full textConstitutions are commonly regarded as uniquely national products, shaped by domestic ideals and politics. This paper develops and empirically investigates a novel hypothesis, which is that constitutions are also shaped by transnational influence, or “diffusion.” Constitutional rights can diffuse through four mechanisms: coercion, competition, learning and acculturation. To analyze diffusion in the constitutional realm, we traced the historical documents of all post-WWII constitutions and documented the presence of 108 constitutional rights. With this data, we first demonstrate and analyze the rapid global spread of constitutional rights over the past six decades. We then estimate a spatial lag model to explain their adoption. Our results show that the decision of countries to adopt a right is correlated with past adoption by their former colonizer, countries with the same legal origin, the same religion, the same former colonizer, and the same aid donor. These transnational correlations are strongest when a nation adopts its first constitution
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