When It Rains, It Pours: Procyclical Capital Flows and Macroeconomic Policies

Kaminsky, Graciela; Reinhart, Carmen; Végh, Carlos A.

doi:10.1086/ma.19.3585327

Cited by 619 publications

(701 citation statements)

References 45 publications

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“…For these countries our measure of overall risk sharing turns negative because (conditional on world consumption growth) the decline in GDP in 2010 was accompanied by a more than proportional decline in consumption. This mirrors the behavior of emerging economies where government saving typically is counter-cyclical as shown by Kaminsky, Reinhart, and Végh (2005).…”

mentioning

confidence: 53%

“…In both Scandinavia and Japan, the contribution to smoothing from real investment increased in the crises. However, the main take-away from these results is that the pattern found for the PIIGS during the sovereign debt crises is unusual for developed European countries, although similar patterns hold in emerging economies as described by Kaminsky, Reinhart, and Végh (2005).…”

mentioning

confidence: 76%

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Debt Crises and Risk Sharing: The Role of Markets versus Sovereigns

Kalemli‐Özcan¹,

Luttini²,

Sørensen³

2014

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Using a variance decomposition of shocks to GDP, we quantify the role of international factor income, international transfers, and saving in achieving risk sharing during the recent European crisis. We focus on the sub-periods 1990-2007, 2008-2009, and 2010 and consider separately the European countries hit by the sovereign debt crisis in 2010. We decompose risk sharing from saving into contributions from government and private saving and show that fiscal austerity programs played an important role in hindering risk sharing during the sovereign debt crisis.

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confidence: 53%

mentioning

confidence: 76%

Debt Crises and Risk Sharing: The Role of Markets versus Sovereigns

Kalemli‐Özcan¹,

Luttini²,

Sørensen³

2014

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“…Evidence presented by Kaminsky et al (2004), for the period 1960-2003 for 104 countries, including developed and developing countries worldwide, shows that the correlation coefficient between the cyclical component of real GDP and real central government expenditure is positive (procyclical) for the majority of countries under study. Only twenty countries (19% of the total) exhibit a negative correlation (countercyclical fiscal stance) between both variables.…”

Section: Discussionmentioning

confidence: 96%

How Stimulative Has Fiscal Policy Been Around the World?

Caldentey

Vernengo

2010

Challenge

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“…7 Capital fl ows are known to be procyclical in emerging economies (Kaminsky et al 2005;Shin 2010). More drastic measures include outright limits or bans on foreign borrowing.…”

Section: Imf Advocacy Of Capital Controlsmentioning

confidence: 99%

The International Monetary System, Energy and Sustainable Development

Kang¹,

Park²

2015

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Korea was the fi rst non-G7 member and Asian country to host the recent G20 Summit, acting as a bridge between advanced and developing nations. At the G20 Seoul Summit, green growth as well as development and a global fi nancial safety net were on the agenda. Against this backdrop, the aim of this book is to comment on and suggest how to go about setting agendas and shaping further discussions of future summits.The book consists of three major parts: the fi rst part discusses the role of G20 in reforming the international monetary system, the status of the IMF since the European sovereign debt crisis, the use of the yuan as the world's reserve currency, and the establishment of a more resilient global fi nancial system. The second part examines trade measures in times of volatile energy prices, the impact of merchandise price volatility on the G20 economies, the EU's pricing policies and the world's price volatility, high oil prices and Russia, and oil markets in South America. The third part reviews G20's fi nancing for green growth, green growth and sustainable development within the G20 framework, and G20's role in addressing climate change and green growth.This book offers an in-depth review of major issues discussed at the recent summits and will be of interest to policy makers.

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When It Rains, It Pours: Procyclical Capital Flows and Macroeconomic Policies

Cited by 619 publications

References 45 publications

Debt Crises and Risk Sharing: The Role of Markets versus Sovereigns

Debt Crises and Risk Sharing: The Role of Markets versus Sovereigns

How Stimulative Has Fiscal Policy Been Around the World?

The International Monetary System, Energy and Sustainable Development

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