Bubbles and capital flow volatility: causes and risk management
"Emerging market economies are fertile ground for the development of real estate and other financial bubbles. Despite these economies' significant growth potential, their corporate and government sectors do not generate the financial instruments to provide residents with adequate stores of...
Gespeichert in:
| Hauptverfasser: | , |
|---|---|
| Format: | Buch |
| Sprache: | English |
| Veröffentlicht: |
Cambridge, Mass.
National Bureau of Economic Research
2005
|
| Schriftenreihe: | National Bureau of Economic Research <Cambridge, Mass.>: NBER working paper series
11618 |
| Schlagworte: | |
| Online-Zugang: | http://papers.nber.org/papers/w11618 Volltext |
| Zusammenfassung: | "Emerging market economies are fertile ground for the development of real estate and other financial bubbles. Despite these economies' significant growth potential, their corporate and government sectors do not generate the financial instruments to provide residents with adequate stores of value. Capital often flows out of these economies seeking these stores of value in the developed world. Bubbles are beneficial because they provide domestic stores of value and thereby reduce capital outflows while increasing investment. But they come at a cost, as they expose the country to bubble-crashes and capital flow reversals. We show that domestic financial underdevelopment not only facilitates the emergence of bubbles, but also leads agents to undervalue the aggregate risk embodied in financial bubbles. In this context, even rational bubbles can be welfare reducing. We study a set of aggregate risk management policies to alleviate the bubble-risk. We show that liquidity requirements, sterilization of capital inflows and structural policies aimed at developing public debt markets "collateralized" by future revenues, all have a high payoff in this environment"--National Bureau of Economic Research web site. |
| Beschreibung: | 27 S. graph. Darst. |
Internformat
MARC
| LEADER | 00000nam a2200000zcb4500 | ||
|---|---|---|---|
| 001 | BV021268514 | ||
| 003 | DE-604 | ||
| 005 | 20100322 | ||
| 007 | t | ||
| 008 | 051216s2005 xxud||| |||| 00||| eng d | ||
| 035 | |a (OCoLC)61912951 | ||
| 035 | |a (DE-599)BVBBV021268514 | ||
| 040 | |a DE-604 |b ger |e rakwb | ||
| 041 | 0 | |a eng | |
| 044 | |a xxu |c XD-US | ||
| 049 | |a DE-703 |a DE-521 |a DE-19 | ||
| 050 | 0 | |a HB1 | |
| 100 | 1 | |a Caballero, Ricardo J. |d 1959- |e Verfasser |0 (DE-588)12844987X |4 aut | |
| 245 | 1 | 0 | |a Bubbles and capital flow volatility |b causes and risk management |c Ricardo J. Caballero ; Arvind Krishnamurthy |
| 264 | 1 | |a Cambridge, Mass. |b National Bureau of Economic Research |c 2005 | |
| 300 | |a 27 S. |b graph. Darst. | ||
| 336 | |b txt |2 rdacontent | ||
| 337 | |b n |2 rdamedia | ||
| 338 | |b nc |2 rdacarrier | ||
| 490 | 1 | |a National Bureau of Economic Research <Cambridge, Mass.>: NBER working paper series |v 11618 | |
| 520 | 3 | |a "Emerging market economies are fertile ground for the development of real estate and other financial bubbles. Despite these economies' significant growth potential, their corporate and government sectors do not generate the financial instruments to provide residents with adequate stores of value. Capital often flows out of these economies seeking these stores of value in the developed world. Bubbles are beneficial because they provide domestic stores of value and thereby reduce capital outflows while increasing investment. But they come at a cost, as they expose the country to bubble-crashes and capital flow reversals. We show that domestic financial underdevelopment not only facilitates the emergence of bubbles, but also leads agents to undervalue the aggregate risk embodied in financial bubbles. In this context, even rational bubbles can be welfare reducing. We study a set of aggregate risk management policies to alleviate the bubble-risk. We show that liquidity requirements, sterilization of capital inflows and structural policies aimed at developing public debt markets "collateralized" by future revenues, all have a high payoff in this environment"--National Bureau of Economic Research web site. | |
| 650 | 4 | |a Entwicklungsländer | |
| 650 | 4 | |a Capital market |z Developing countries | |
| 650 | 4 | |a Finance |z Developing countries | |
| 700 | 1 | |a Krishnamurthy, Arvind |e Verfasser |0 (DE-588)128635991 |4 aut | |
| 776 | 0 | 8 | |i Erscheint auch als |n Online-Ausgabe |
| 830 | 0 | |a National Bureau of Economic Research <Cambridge, Mass.>: NBER working paper series |v 11618 |w (DE-604)BV002801238 |9 11618 | |
| 856 | 4 | |u http://papers.nber.org/papers/w11618 | |
| 856 | 4 | 1 | |u http://papers.nber.org/papers/w11618.pdf |z kostenfrei |3 Volltext |
| 999 | |a oai:aleph.bib-bvb.de:BVB01-014589669 | ||
Datensatz im Suchindex
| _version_ | 1804135047312179200 |
|---|---|
| adam_txt | |
| any_adam_object | |
| any_adam_object_boolean | |
| author | Caballero, Ricardo J. 1959- Krishnamurthy, Arvind |
| author_GND | (DE-588)12844987X (DE-588)128635991 |
| author_facet | Caballero, Ricardo J. 1959- Krishnamurthy, Arvind |
| author_role | aut aut |
| author_sort | Caballero, Ricardo J. 1959- |
| author_variant | r j c rj rjc a k ak |
| building | Verbundindex |
| bvnumber | BV021268514 |
| callnumber-first | H - Social Science |
| callnumber-label | HB1 |
| callnumber-raw | HB1 |
| callnumber-search | HB1 |
| callnumber-sort | HB 11 |
| callnumber-subject | HB - Economic Theory and Demography |
| ctrlnum | (OCoLC)61912951 (DE-599)BVBBV021268514 |
| format | Book |
| fullrecord | <?xml version="1.0" encoding="UTF-8"?><collection xmlns="http://www.loc.gov/MARC21/slim"><record><leader>02705nam a2200385zcb4500</leader><controlfield tag="001">BV021268514</controlfield><controlfield tag="003">DE-604</controlfield><controlfield tag="005">20100322 </controlfield><controlfield tag="007">t</controlfield><controlfield tag="008">051216s2005 xxud||| |||| 00||| eng d</controlfield><datafield tag="035" ind1=" " ind2=" "><subfield code="a">(OCoLC)61912951</subfield></datafield><datafield tag="035" ind1=" " ind2=" "><subfield code="a">(DE-599)BVBBV021268514</subfield></datafield><datafield tag="040" ind1=" " ind2=" "><subfield code="a">DE-604</subfield><subfield code="b">ger</subfield><subfield code="e">rakwb</subfield></datafield><datafield tag="041" ind1="0" ind2=" "><subfield code="a">eng</subfield></datafield><datafield tag="044" ind1=" " ind2=" "><subfield code="a">xxu</subfield><subfield code="c">XD-US</subfield></datafield><datafield tag="049" ind1=" " ind2=" "><subfield code="a">DE-703</subfield><subfield code="a">DE-521</subfield><subfield code="a">DE-19</subfield></datafield><datafield tag="050" ind1=" " ind2="0"><subfield code="a">HB1</subfield></datafield><datafield tag="100" ind1="1" ind2=" "><subfield code="a">Caballero, Ricardo J.</subfield><subfield code="d">1959-</subfield><subfield code="e">Verfasser</subfield><subfield code="0">(DE-588)12844987X</subfield><subfield code="4">aut</subfield></datafield><datafield tag="245" ind1="1" ind2="0"><subfield code="a">Bubbles and capital flow volatility</subfield><subfield code="b">causes and risk management</subfield><subfield code="c">Ricardo J. Caballero ; Arvind Krishnamurthy</subfield></datafield><datafield tag="264" ind1=" " ind2="1"><subfield code="a">Cambridge, Mass.</subfield><subfield code="b">National Bureau of Economic Research</subfield><subfield code="c">2005</subfield></datafield><datafield tag="300" ind1=" " ind2=" "><subfield code="a">27 S.</subfield><subfield code="b">graph. Darst.</subfield></datafield><datafield tag="336" ind1=" " ind2=" "><subfield code="b">txt</subfield><subfield code="2">rdacontent</subfield></datafield><datafield tag="337" ind1=" " ind2=" "><subfield code="b">n</subfield><subfield code="2">rdamedia</subfield></datafield><datafield tag="338" ind1=" " ind2=" "><subfield code="b">nc</subfield><subfield code="2">rdacarrier</subfield></datafield><datafield tag="490" ind1="1" ind2=" "><subfield code="a">National Bureau of Economic Research <Cambridge, Mass.>: NBER working paper series</subfield><subfield code="v">11618</subfield></datafield><datafield tag="520" ind1="3" ind2=" "><subfield code="a">"Emerging market economies are fertile ground for the development of real estate and other financial bubbles. Despite these economies' significant growth potential, their corporate and government sectors do not generate the financial instruments to provide residents with adequate stores of value. Capital often flows out of these economies seeking these stores of value in the developed world. Bubbles are beneficial because they provide domestic stores of value and thereby reduce capital outflows while increasing investment. But they come at a cost, as they expose the country to bubble-crashes and capital flow reversals. We show that domestic financial underdevelopment not only facilitates the emergence of bubbles, but also leads agents to undervalue the aggregate risk embodied in financial bubbles. In this context, even rational bubbles can be welfare reducing. We study a set of aggregate risk management policies to alleviate the bubble-risk. We show that liquidity requirements, sterilization of capital inflows and structural policies aimed at developing public debt markets "collateralized" by future revenues, all have a high payoff in this environment"--National Bureau of Economic Research web site.</subfield></datafield><datafield tag="650" ind1=" " ind2="4"><subfield code="a">Entwicklungsländer</subfield></datafield><datafield tag="650" ind1=" " ind2="4"><subfield code="a">Capital market</subfield><subfield code="z">Developing countries</subfield></datafield><datafield tag="650" ind1=" " ind2="4"><subfield code="a">Finance</subfield><subfield code="z">Developing countries</subfield></datafield><datafield tag="700" ind1="1" ind2=" "><subfield code="a">Krishnamurthy, Arvind</subfield><subfield code="e">Verfasser</subfield><subfield code="0">(DE-588)128635991</subfield><subfield code="4">aut</subfield></datafield><datafield tag="776" ind1="0" ind2="8"><subfield code="i">Erscheint auch als</subfield><subfield code="n">Online-Ausgabe</subfield></datafield><datafield tag="830" ind1=" " ind2="0"><subfield code="a">National Bureau of Economic Research <Cambridge, Mass.>: NBER working paper series</subfield><subfield code="v">11618</subfield><subfield code="w">(DE-604)BV002801238</subfield><subfield code="9">11618</subfield></datafield><datafield tag="856" ind1="4" ind2=" "><subfield code="u">http://papers.nber.org/papers/w11618</subfield></datafield><datafield tag="856" ind1="4" ind2="1"><subfield code="u">http://papers.nber.org/papers/w11618.pdf</subfield><subfield code="z">kostenfrei</subfield><subfield code="3">Volltext</subfield></datafield><datafield tag="999" ind1=" " ind2=" "><subfield code="a">oai:aleph.bib-bvb.de:BVB01-014589669</subfield></datafield></record></collection> |
| id | DE-604.BV021268514 |
| illustrated | Illustrated |
| index_date | 2024-07-02T13:43:50Z |
| indexdate | 2024-07-09T20:34:17Z |
| institution | BVB |
| language | English |
| oai_aleph_id | oai:aleph.bib-bvb.de:BVB01-014589669 |
| oclc_num | 61912951 |
| open_access_boolean | 1 |
| owner | DE-703 DE-521 DE-19 DE-BY-UBM |
| owner_facet | DE-703 DE-521 DE-19 DE-BY-UBM |
| physical | 27 S. graph. Darst. |
| publishDate | 2005 |
| publishDateSearch | 2005 |
| publishDateSort | 2005 |
| publisher | National Bureau of Economic Research |
| record_format | marc |
| series | National Bureau of Economic Research <Cambridge, Mass.>: NBER working paper series |
| series2 | National Bureau of Economic Research <Cambridge, Mass.>: NBER working paper series |
| spelling | Caballero, Ricardo J. 1959- Verfasser (DE-588)12844987X aut Bubbles and capital flow volatility causes and risk management Ricardo J. Caballero ; Arvind Krishnamurthy Cambridge, Mass. National Bureau of Economic Research 2005 27 S. graph. Darst. txt rdacontent n rdamedia nc rdacarrier National Bureau of Economic Research <Cambridge, Mass.>: NBER working paper series 11618 "Emerging market economies are fertile ground for the development of real estate and other financial bubbles. Despite these economies' significant growth potential, their corporate and government sectors do not generate the financial instruments to provide residents with adequate stores of value. Capital often flows out of these economies seeking these stores of value in the developed world. Bubbles are beneficial because they provide domestic stores of value and thereby reduce capital outflows while increasing investment. But they come at a cost, as they expose the country to bubble-crashes and capital flow reversals. We show that domestic financial underdevelopment not only facilitates the emergence of bubbles, but also leads agents to undervalue the aggregate risk embodied in financial bubbles. In this context, even rational bubbles can be welfare reducing. We study a set of aggregate risk management policies to alleviate the bubble-risk. We show that liquidity requirements, sterilization of capital inflows and structural policies aimed at developing public debt markets "collateralized" by future revenues, all have a high payoff in this environment"--National Bureau of Economic Research web site. Entwicklungsländer Capital market Developing countries Finance Developing countries Krishnamurthy, Arvind Verfasser (DE-588)128635991 aut Erscheint auch als Online-Ausgabe National Bureau of Economic Research <Cambridge, Mass.>: NBER working paper series 11618 (DE-604)BV002801238 11618 http://papers.nber.org/papers/w11618 http://papers.nber.org/papers/w11618.pdf kostenfrei Volltext |
| spellingShingle | Caballero, Ricardo J. 1959- Krishnamurthy, Arvind Bubbles and capital flow volatility causes and risk management National Bureau of Economic Research <Cambridge, Mass.>: NBER working paper series Entwicklungsländer Capital market Developing countries Finance Developing countries |
| title | Bubbles and capital flow volatility causes and risk management |
| title_auth | Bubbles and capital flow volatility causes and risk management |
| title_exact_search | Bubbles and capital flow volatility causes and risk management |
| title_exact_search_txtP | Bubbles and capital flow volatility causes and risk management |
| title_full | Bubbles and capital flow volatility causes and risk management Ricardo J. Caballero ; Arvind Krishnamurthy |
| title_fullStr | Bubbles and capital flow volatility causes and risk management Ricardo J. Caballero ; Arvind Krishnamurthy |
| title_full_unstemmed | Bubbles and capital flow volatility causes and risk management Ricardo J. Caballero ; Arvind Krishnamurthy |
| title_short | Bubbles and capital flow volatility |
| title_sort | bubbles and capital flow volatility causes and risk management |
| title_sub | causes and risk management |
| topic | Entwicklungsländer Capital market Developing countries Finance Developing countries |
| topic_facet | Entwicklungsländer Capital market Developing countries Finance Developing countries |
| url | http://papers.nber.org/papers/w11618 http://papers.nber.org/papers/w11618.pdf |
| volume_link | (DE-604)BV002801238 |
| work_keys_str_mv | AT caballeroricardoj bubblesandcapitalflowvolatilitycausesandriskmanagement AT krishnamurthyarvind bubblesandcapitalflowvolatilitycausesandriskmanagement |