Smoothing sudden stops

• 成果类型: Article; Proceedings Paper
• 署名作者: Caballero, RJ; Krishnamurthy, A
• 署名单位: Northwestern University; Massachusetts Institute of Technology (MIT)
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/S0022-0531(03)00227-8
• 发表日期: 2004
• 页码: 104-127
• 关键词: external shocks; domestic and international collateral; Underinsurance; credit lines; liquidity requirements; asset market intervention

摘要

Emerging economies are often exposed to sudden shortages of international financial resources. Yet domestic agents do not seem to take preventive measures against these sudden stops. We highlight the central role played by the limited development of ex ante (insurance) and ex post (spot) domestic financial markets in generating this collective undervaluation of international resources. We study several policies to counteract the external underinsurance. We do this by solving for the optimal mechanism given the constraints imposed by limited financial development, and then considering the main financial policies-in terms of the model and practical relevance-that implement this solution. (C) 2003 Elsevier Inc. All rights reserved.