Measuring Sudden Stops in Mongolia

Batjargal, Dulamzaya and Doojav, Gan-Ochir (2020): Measuring Sudden Stops in Mongolia. Published in: Journal of Money, Finance and Wealth , Vol. 22, No. 2020-22 (December 2020): pp. 68-83.

Abstract

In this paper, we empirically examine the sudden stops in capital flows in Mongolia based on Calvo et al. (2004) approach in the past two decades. We found 5 episodes of sudden stops in capital flows and 5 episodes of sudden stops in domestic credits since 1998. Domestic sudden stops lasted longer than the external sudden stop and, in most cases, external sudden stops are followed by the domestic sudden stops. The common consequences of sudden stops on the economy are reduced investments, slack in credits, economic slowdown, the exchange rate depreciation, decline in reserves, and banking crisis/difficulties.

• Item Type: MPRA Paper
• Language: English
• Keywords: Sudden stops, Capital flows, Exchange rate volatility, Mongolia
• Subjects: F - International Economics > F0 - General; F - International Economics > F3 - International Finance > F32 - Current Account Adjustment ; Short-Term Capital Movements; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F41 - Open Economy Macroeconomics

References

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