The significant amplification effect of collateral constraints in Kiyotaki and Moore (1997) for adverse shocks depends on the assumption that there is no default ex post, even when the outstanding debt is larger than the value of collateral assets. We show that allowing for explicit default eliminates the dynamic amplification effects in their setup. When there is specificity in the use of prod...

This paper develops a change-point VAR model that isolates four major macroeconomic regimes in the US since the 1960s. The model identifies shocks to demand, supply, monetary policy, and spread yield using restrictions from a general equilibrium model. The analysis discloses important changes to the statistical properties of key macroeconomic variables and their responses to the identified shoc...

1 1 Lessons from sudden stops 3 1.

tion, and disinvestments in health systems have contributed to increasing national crises and made countries more vulnerable to systemic shocks. Over this period the world has experienced an alarming increase in costly humanitarian disasters that have tragically affected millions of people each year. Shocks have included violent internal conflicts; natural traumas such as droughts and hurricane...

One of the striking features of the business cycles is the patterns of co-movement of output, inflation, interest rates, and real equity prices across countries. This paper empirically examines the effects of domestic and foreign monetary policies on Iranchr('39')s macroeconomic variables (including real production, inflation, short-term interest rate, and real exchange rate) using quarterly da...

The author develops the first comparative empirical study of bank failures during the nineties between East Asia and Latin America using bank-level data, in order to address the following two questions: (i) To what extent did individual bank conditions explain bank failures? (ii) Did mainly the weakest banks, in terms of their fundamentals, fail in the crisis countries? The main results for Eas...

"If there are two or more ways to do something, and one of those ways can result in a catastrophe, then someone will do it." The economic history of the world is replete with recessions and depressions. From the bursting of the British South Sea Bubble and the French Mississippi Bubble in 1720 (which at least one economic historian claims delayed the industrial revolution by 50 years) to the in...

In this paper, we use tax and household survey data to assess the history of income distribution in Argentina since the beginning of the 20th century. Until the 1970s, the country experienced a fall in inequality in spite of lower income growth. Since then, inequality has generally increased possibly as a result of largescale shocks such as macroeconomic crises and reform attempts, resulting in...