TY  - BOOK
AU  - Catão,Luis
TI  - Sudden Stops and Currency Drops: A Historical Look 
T2  - IMF Working Papers; Working Paper
SN  - 1451863934 :
SN  - 1018-5941
PY  - 2006///
CY  - Washington, D.C.
PB  - International Monetary Fund
KW  - Capital Inflow
KW  - imf
KW  - Capital Inflows
KW  - Exchange Rate
KW  - Financial Markets and the Macroeconomy
KW  - Foreign Capital Inflow
KW  - Foreign Capital
KW  - Argentina
KW  - Brazil
KW  - Chile
KW  - Greece
KW  - Italy
N2  - This paper shows that recent manifestations of sudden stops (SSs) in international capital flows have striking parallels in the early financial globalization era preceding World War I. All main capital-importing countries then faced episodic capital flow reversals averaging some 5 percent of GDP and with a median duration of four years. Most SSs also displayed striking crosscountry synchronization, being immediately preceded by rising world interest rates. Both fixed and floating exchange rate regimes were hit, with no significant differences between them. Yet, not all SSs resulted in currency drops: while some countries experienced currency collapses, others managed to preserve exchange rate stability. These different responses are related to domestic "frictions" that heightened the procyclicality of absorption and hindered precautionary reserve accumulation in some countries relative to others
UR  - http://elibrary.imf.org/view/IMF001/06570-9781451863932/06570-9781451863932/06570-9781451863932.xml
UR  - http://www.imfbookstore.org/IMFORG/9781451863932
ER  -