From the Great Moderation to the Global Crisis: Exchange Market Pressure in the 2000s

Joshua Aizenman; Jaewoo Lee; Vladyslav Sushko

doi:10.1007/s11079-011-9228-y

From the Great Moderation to the Global Crisis: Exchange Market Pressure in the 2000s

Joshua Aizenman, Jaewoo Lee, Vladyslav Sushko

Research output: Contribution to journal › Article › peer-review

21 Scopus citations

Abstract

We study exchange market pressures (EMP) and using international reserves by emerging markets (EMs) during the 2000s. We find that financial considerations dominated trade factors. The impact of gross short-term external debt quintuples during the crisis. Capital outflows and deleveraging was the force behind EMP rise during the global financial crisis. Greater FDI (greater portfolio debt) inflows prior to the crisis were associated with a lower (higher) crisis EMP, respectively. The severity of the financial shock was exacerbated by financial ties to the U. S., while the trade shock was more severe in EMs with a larger commodity export share.

Original language	English
Pages (from-to)	597-621
Number of pages	25
Journal	Open Economies Review
Volume	23
Issue number	4
DOIs	https://doi.org/10.1007/s11079-011-9228-y
State	Published - 1 Sep 2012
Externally published	Yes

Keywords

Exchange market pressure
Financial and trade factors
Global crisis
International reserves

ASJC Scopus subject areas

Economics and Econometrics

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1007/s11079-011-9228-y

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From the Great Moderation to the Global Crisis: Exchange Market Pressure in the 2000s

Abstract

Keywords

ASJC Scopus subject areas

UN SDGs

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