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Overborrowing, Financial Crises and ‘Macro-Prudential’ Policy?

Mendoza, Enrique G. - 2011

This paper studies overborrowing, financial crises and macro-prudential policy in an equilibrium model of business cycles and asset prices with collateral constraints. Agents in a decentralized competitive equilibrium do not internalize the negative effects of asset fire-sales on the value of...

Persistent link: https://www.econbiz.de/10014402904

Precautionary Demand for Foreign Assets in Sudden Stop Economies : An Assessment of the New Merchantilism

Mendoza, Enrique G. - 2007

Financial globalization was off to a rocky start in emerging economies hit by Sudden Stops in the 1990s. The surge in foreign reserves since then is viewed as a New Merchantilism in which reserves are a war-chest for defense against Sudden Stops. We conduct a quantitative assessment of this...

Persistent link: https://www.econbiz.de/10014400221

Overborrowing, financial crises and "macroprudential" policy

Bianchi, Javier; Mendoza, Enrique G. - 2011

Persistent link: https://www.econbiz.de/10009487097

Are Asset Price Guarantees Useful for Preventing Sudden Stops? : A Quantitative Investigation of the Globalization Hazard-Moral Hazard Tradeoff

Mendoza, Enrique G. - 2006

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...

Persistent link: https://www.econbiz.de/10014402400

Financial innovation, the Discovery of Risk, and the U.S. Credit Crisis

Mendoza, Enrique G. - 2010

Uncertainty about the riskiness of new financial products was an important factor behind the U.S. credit crisis. We show that a boom-bust cycle in debt, asset prices and consumption characterizes the equilibrium dynamics of a model with a collateral constraint in which agents learn ""by...

Persistent link: https://www.econbiz.de/10014402674

Macro-prudential policy in a Fisherian model of financial innovation

Bianchi, Javier; Boz, Emine; Mendoza, Enrique G. - 2012

Persistent link: https://www.econbiz.de/10009620984

Macro-prudential Policy in a Fisherian Model of Financial Innovation

Bianchi, Javier - 2012

The interaction between credit frictions, financial innovation, and a switch from optimistic to pessimistic beliefs … innovation enhances the ability of agents to collateralize assets into debt, but the riskiness of this new regime can only be … tightness of credit constraints and the pace at which optimism surges in the early stages of financial innovation. The policy is …

Persistent link: https://www.econbiz.de/10014395681

Do Taxes Matter for Long-Run Growth? : Harberger's Superneutrality Conjecture

Asea, Patrick K. - 1995

Harberger’s superneutrality conjecture contends that, although in theory the mix of direct and indirect taxes affects …

Persistent link: https://www.econbiz.de/10014395798

Supply-Side Economics in an Integrated World Economy

Tesa, Linda L. - 1993

The macroeconomic effects of changes in tax and expenditure policies are examined in the context of the competitive equilibrium of a two-country, two-sector model of an integrated world economy. Governments finance purchases and net transfers of tradable and nontradable goods by imposing...

Persistent link: https://www.econbiz.de/10014395806

The Macroeconomic Effects of Capital Controls and the Stabilization of the Balance of Trade

Mendoza, Enrique G. - 1990

A dynamic stochastic equilibrium model of a small open economy is used to quantify the macroeconomic effects of introducing capital controls to stabilize the balance of trade. This model focuses on the role of international trade and foreign debt as instruments that help smooth consumption in...

Persistent link: https://www.econbiz.de/10014395847