Hot Money

Hot Money And External Adjustment

This paper studies the behavior of international capital flows driven by the portfolio reallocation decisions of international investors; so-called hot money. I develop an open economy model with endowment and preference shocks that can account for the empirical behavior of real exchange rates, interest rates and consumption in the U.S. and Europe. The model includes financial frictions that im...

Book Précis Hot Money, Cold Money: Managing Global Capital Flows in Chile, South Korea, and Turkey

Financial opening and the liberalization of capital flows across national borders, one of the most salient aspects of globalization, has had a significant role in shaping the economic and social development trajectory of developing and emerging economies since the 1980s. This book manuscript seeks to determine the conditions under which emerging economies embrace as well as curtail capital mobi...

Spending money to save money.

t is a challenging time to be taking up the reins of Sexually Transmitted Infections. After a prolonged period of decline, there are epidemics of bacterial STIs in the United Kingdom and Western Europe, including outbreaks of syphilis. HIV continues to escalate; the prevalence of HIV is escalating due to persistent or rising incidence combined with increased survival. Globally we face major epi...

“ Money ” is the Reserves not the Money ∗

In this paper I will argue that the institutional implementations that we commonly include in our monetary aggregates are actually more similar to the concept of monetary base. I will also argue that the institutional implementation of accounts payable operates as money. This slightly translated definition implies that a new monetary aggregate that includes accounts payable may be useful for co...

The Credit Money and State Money Approaches