Download This PaperIs-Lm-Bp in the Pampas
33 Pages Posted: 15 Nov 2002 Last revised: 8 Jul 2022
Date Written: November 2002
Abstract
Emerging markets (sometimes endowed with fertile pampas) have limited access to world capital markets and suffer from original sin: they cannot borrow in their own currency. Does this mean that monetary and exchange rate policy has non-standard effects in such countries? We develop a simple IS-LM-BP model with balance sheet effects to study that question. Our answer: it all depends.
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
International and Domestic Collateral Constraints in a Model of Emerging Market Crises
-
International and Domestic Collateral Constraints in a Model of Emerging Market Crises
-
On the Empirics of Sudden Stops: The Relevance of Balance-Sheet Effects
By Guillermo A. Calvo, Alejandro Izquierdo, ...
-
Currency Crises and Monetary Policy in an Economy with Credit Constraints
By Philippe Aghion, Abhijit V. Banerjee, ...
-
On the Empirics of Sudden Stops: The Relevance of Balance-Sheet Effects
By Guillermo A. Calvo, Alejandro Izquierdo, ...
-
Current Account Reversals and Currency Crises: Empirical Regularities
-
Balance Sheets and Exchange Rate Policy
By Luis Felipe Cespedes, Roberto Chang, ...
-
Sudden Stops, the Real Exchange Rate, and Fiscal Sustainability: Argentina's Lessons
By Guillermo A. Calvo, Alejandro Izquierdo, ...
-
Sudden Stops, the Real Exchange Rate and Fiscal Sustainability: Argentina's Lessons
By Alejandro Izquierdo, Ernesto Talvi, ...
-
Thirty Years of Current Account Imbalances, Current Account Reversals and Sudden Stops