Now showing items 1-9 of 9
Aid, policies, and growth: Reply
(American Economic Review, 2004-06-01)
Government guarantees and self-fulfilling speculative attacks
(Journal of Economic Theory, 2004-11-01)
We develop a model in which government guarantees to banks' foreign creditors are a root cause of self-fulfilling twin banking-currency crises. Absent guarantees, such crises are not possible. In the presence of guarantees ...
Hedging and financial fragility in fixed exchange rate regimes
(European Economic Review, 2001-06-23)
Currency crises that coincide with banking crises tend to share at least three elements. First, banks have a currency mismatch between their assets and liabilities. Second, banks do not completely hedge the associated exchange ...
Aid, policies, and growth
(American Economic Review, 2000-09-01)
This paper uses a new database on foreign aid to examine the relationships among foreign aid, economic policies, and growth of per capita GDP. We find that aid has a positive impact on growth in developing countries with ...
Fiscal shocks and their consequences
(Journal of Economic Theory, 2004-03-01)
This paper investigates the response of hours worked and real wages to fiscal policy shocks in the post-World-War II US. We identify these shocks with exogenous changes in military purchases and argue that they lead to a ...
Currency crises and contingent liabilities
(Journal of International Economics, 2004-01-01)
A contingent liability is a future spending commitment that is realized with some probability. International organizations emphasize the dangers of contingent liabilities when providing advice. Why? One answer is obvious-if ...
Government finance in the wake of currency crises
(Journal of Monetary Economics, 2006-04-01)
We address three questions: (i) Can classical models be reconciled with the fact that many crises are marked by high rates of depreciation and small increases in seignorage revenue? (ii) What are the implications of different ...
Carry trade: The gains of diversification
(Journal of the European Economic Association, 2008-04-01)
Market participants routinely take advantage of the failure of uncovered interest rate parity to speculate in currency markets. Perhaps the most widely used currency speculation strategy is the carry trade. In this article ...
Understanding the Forward Premium Puzzle: A Microstructure Approach
(American Economic Journal: Macroeconomics, 2009-07)