The Simple Economics of Sudden Stops

Muhammad, Ejaz (2017): The Simple Economics of Sudden Stops.

Abstract

This short note looks at the phenomenon of fear of floating -a term first introduced by Calvo (1998)-in case of Pakistan. The analysis shows that the phenomenon was indeed present in episode of volatile aned intermittent capital flows. This phenomenon has never been tested for Pakistan before.

• Item Type: MPRA Paper
• Language: English
• Keywords: Fear of Floating, Capital Flows
• Subjects: E - Macroeconomics and Monetary Economics > E0 - General > E03 - Behavioral Macroeconomics; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E65 - Studies of Particular Policy Episodes

References

1- Calvo, G. A. (1998). Capital Flows and Capital-Market Crises: The Simple Economics of Sudden Stops. Journal of Applied Economics, Vol 1 (1), 35-54.

2- Calvo, G. A., Izquierdo, A., & Mejía, L.-F. (2004). NBER . Retrieved July 11, 2017, from ON THE EMPIRICS OF SUDDEN STOPS:THE RELEVANCE OF BALANCE-SHEET EFFECTS: http://www.nber.org/papers/w10520.pdf

3- Cavallo, E., Powell, A., Pedemonte, M., & Tavella, P. (2015). A new taxonomy of Sudden Stops:Which Sudden Stops should countries be most concerned about. Journal of International Money and Finance , 47-70.

4- Izquierdo, A. (2013). The Evidence and Impact of Financial Globalization.