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Dealing with systemic sovereign debt crises : fiscal consolidation, bail-ins or official transfers?

Sandri, Damiano - 2015

The paper presents a tractable model to understand how international financial institutions (IFIs) should deal with the sovereign debt crisis of a systemic country, in which case private creditors' bail-ins entail international spillovers. Besides lending to the country up to its borrowing...

Persistent link: https://www.econbiz.de/10011408278

The expansionary lower bound : contractionary monetary easing and the trilemma

Cavallino, Paolo; Sandri, Damiano - 2018

We provide a theory of the limits to monetary policy independence in open economies arising from the interaction … between capital flows and domestic collateral constraints. The key feature of our theory is the existence of an 'Expansionary …

Persistent link: https://www.econbiz.de/10012112314

Current Account Rebalancing and Real Exchange Rate Adjustment Between the U.S. and Emerging Asia

Sandri, Damiano - 2011

A reduction in the U.S. current account deficit vis-à-vis emerging Asia involves a shift in demand from U.S. to … emerging Asia tradable goods and a change in international relative prices. This paper quantifies the required adjustment in … Asia. We compare scenarios where both Chinese and other emerging Asian export prices change by the same proportion to the …

Persistent link: https://www.econbiz.de/10011779741

Current account rebalancing and real exchange rate adjustment between the U.S. and emerging Asia

Méjean, Isabelle; Rabanal, Pau; Sandri, Damiano - 2011

Persistent link: https://www.econbiz.de/10009487129

Dampening global financial shocks : can macroprudential regulation help (more than capital controls)?

Bergant, Katharina; Grigoli, Francesco; Hansen, … - 2020

We show that macroprudential regulation can considerably dampen the impact of global financial shocks on emerging markets. More specifically, a tighter level of regulation reduces the sensitivity of GDP growth to VIX movements and capital flow shocks. A broad set of macroprudential tools...

Persistent link: https://www.econbiz.de/10012252052

Debt and Growth : Is There a Magic Threshold?

Pescatori, Andrea - 2014

Using a novel empirical approach and an extensive dataset developed by the Fiscal Affairs Department of the IMF, we find no evidence of any particular debt threshold above which medium-term growth prospects are dramatically compromised. Furthermore, we find the debt trajectory can be as...

Persistent link: https://www.econbiz.de/10014411150

Precautionary savings in the Great Recession

Mody, Ashoka; Ohnsorge, Franziska; Sandri, Damiano - 2012

Persistent link: https://www.econbiz.de/10009572544

Macro-Hedging for Commodity Exporters

Borensztein, Eduardo - 2009

This paper uses a dynamic optimization model to estimate the welfare gains of hedging against commodity price risk for commodity-exporting countries. The introduction of hedging instruments such as futures and options enhances domestic welfare through two channels. First, by reducing export...

Persistent link: https://www.econbiz.de/10014402269

Growth and Capital Flows with Risky Entrepreneurship

Sandri, Damiano - 2010

This paper shows that the behavior of entrepreneurs facing incomplete financial markets and risky investment can explain why growth accelerations in developing countries tend to be associated with current account improvements. The uninsurable risk of losing invested capital forces entrepreneurs...

Persistent link: https://www.econbiz.de/10014404314

Precautionary Savings in the Great Recession

Mody, Ashoka - 2012

Heightened uncertainty since the onset of the Great Recession has materially increased saving rates, contributing to lower consumption and GDP growth. Consistent with a model of precautionary savings in the face of uncertainty, we find for a panel of advanced economies that greater labor income...

Persistent link: https://www.econbiz.de/10014396946