M09a_FinancialCrisis
... “Bank Run” to dump Ruble led to large loss of international reserves • Russia – Devalued Ruble – Defaulted on domestic debt – Moratorium on payments on foreign debt • Quick recovery due to surge in oil prices ...
... “Bank Run” to dump Ruble led to large loss of international reserves • Russia – Devalued Ruble – Defaulted on domestic debt – Moratorium on payments on foreign debt • Quick recovery due to surge in oil prices ...
What Hazard? - Inter-American Development Bank
... Pou's departure and currency basket? Fiscal devaluation? ...
... Pou's departure and currency basket? Fiscal devaluation? ...
Emerging Market Economies: economies in an earlier stage of
... Stage1: Initiation of Financial Crisis Path1: Mismanagement of Financial Liberalization/Globalization 1) Eliminating restrictions Fixed Exchange Rate Interest Rate increases 2) Weak Supervision 3) Moral hazard problems and adverse selection 4) Deterioration in bank’s balance sheets Example: Mexico E ...
... Stage1: Initiation of Financial Crisis Path1: Mismanagement of Financial Liberalization/Globalization 1) Eliminating restrictions Fixed Exchange Rate Interest Rate increases 2) Weak Supervision 3) Moral hazard problems and adverse selection 4) Deterioration in bank’s balance sheets Example: Mexico E ...
Argentina`s crisis of 2001, resulted from a confluence of
... sector not like in Mexico, trade liberalization, deregulation, and adoption of currency board. The 1rst of April of 1991, Argentina’s Congress creates a convertibility Law, which legally adopts the currency board guaranteeing the convertibility of peso currency to dollars at oneto-one fixed rate and ...
... sector not like in Mexico, trade liberalization, deregulation, and adoption of currency board. The 1rst of April of 1991, Argentina’s Congress creates a convertibility Law, which legally adopts the currency board guaranteeing the convertibility of peso currency to dollars at oneto-one fixed rate and ...
Argentina 2 - BYU Marriott School
... historically uneven. Upper-middle income country. Most economically developed country in South America (measured in GDP per capita and HDI) ...
... historically uneven. Upper-middle income country. Most economically developed country in South America (measured in GDP per capita and HDI) ...
Principles of Business
... Recovery 22. Which type of interest rate is offered by the Federal Reserve to financial institutions for loans? Discount rate 23. What are the four main factors to the international business environment? Geography, cultural influences, economic development, and political and legal concerns 24. This ...
... Recovery 22. Which type of interest rate is offered by the Federal Reserve to financial institutions for loans? Discount rate 23. What are the four main factors to the international business environment? Geography, cultural influences, economic development, and political and legal concerns 24. This ...
Ankara, Turkey, September 12, 2006
... i.e., serious difficulty in rolling over significant amounts of bonds as they mature or come due. Thus, especially dangerous are: bunching ...
... i.e., serious difficulty in rolling over significant amounts of bonds as they mature or come due. Thus, especially dangerous are: bunching ...
Beyond the Border - The Tequila Effect
... the central bank’s ability to act as a those of Latin America. By the end of lender of last resort or to provide deposit February, Argentina’s stock market had insurance (bailing out financial institudropped 32.1 percent, Brazil’s 33.6 tions or depositors by printing money percent and Peru’s 28.7 pe ...
... the central bank’s ability to act as a those of Latin America. By the end of lender of last resort or to provide deposit February, Argentina’s stock market had insurance (bailing out financial institudropped 32.1 percent, Brazil’s 33.6 tions or depositors by printing money percent and Peru’s 28.7 pe ...
THE EU INSTITUTIONAL SYSTEM
... The impact of full economic integration: The balance of payments crisis of 1985 ...
... The impact of full economic integration: The balance of payments crisis of 1985 ...
Lecture 17: The IMF & Financial Crises
... they would be repaid, no matter what. – Why? They knew the U.S. wouldn’t let Mexico’s economy collapse. That is what the IMF is for. ...
... they would be repaid, no matter what. – Why? They knew the U.S. wouldn’t let Mexico’s economy collapse. That is what the IMF is for. ...
GDP Indexed bonds
... Brady Bonds Value Recovery Rights (VRRs) GDP VRRs (Costa Rica, Bulgaria, Bosnia) Ciudad de Buenos Aires Options on US economic statistics (Longitude-DB-GS) Inflation-indexed bonds ...
... Brady Bonds Value Recovery Rights (VRRs) GDP VRRs (Costa Rica, Bulgaria, Bosnia) Ciudad de Buenos Aires Options on US economic statistics (Longitude-DB-GS) Inflation-indexed bonds ...
Once Upon a Time in Mexico
... infrastructure and decreasing budget deficits enabled largely by favorable world oil prices • Huge gaps between the rich and the poor remain, unemployment rates still high, political and economic stability remains in question ...
... infrastructure and decreasing budget deficits enabled largely by favorable world oil prices • Huge gaps between the rich and the poor remain, unemployment rates still high, political and economic stability remains in question ...
Long Term Outlook for the Economy
... • Other problems, such as Credit Default Swaps ($62 trillion last year, now $30+ trillion) are much bigger. • The Credit Crisis is a major de-leveraging of the financial excesses that have built up in the last 30 years. It should take at least a decade to fix. ...
... • Other problems, such as Credit Default Swaps ($62 trillion last year, now $30+ trillion) are much bigger. • The Credit Crisis is a major de-leveraging of the financial excesses that have built up in the last 30 years. It should take at least a decade to fix. ...
Shock Therapy Economic Subordination Sham Stablization
... increased from 14% to 50% of federal revenues By 1999 Russia was scheduled to pay $17 billion to foreign creditors which was equivalent to the entire federal deficit ...
... increased from 14% to 50% of federal revenues By 1999 Russia was scheduled to pay $17 billion to foreign creditors which was equivalent to the entire federal deficit ...
The Argentina Debt Case* Jayati Ghosh
... Argentina but for finance in general. The Argentine government appealed against it, but this appeal has now been dismissed by the US Supreme Court. Consider just some elements of this US court decision. First, it is based on a peculiar and unprecedented interpretation of the pari passu (equal treat ...
... Argentina but for finance in general. The Argentine government appealed against it, but this appeal has now been dismissed by the US Supreme Court. Consider just some elements of this US court decision. First, it is based on a peculiar and unprecedented interpretation of the pari passu (equal treat ...
Debt Default and Lessons from a Decade of Crises
... Thoughts on financial architecture (cont.) 3. First best international institutions are mostly politically unfeasible. They are too ambitious. ...
... Thoughts on financial architecture (cont.) 3. First best international institutions are mostly politically unfeasible. They are too ambitious. ...
Korea`s Experience with External Debt Management
... Initial tightening of monetary and fiscal policy The consequential increase in interest rates contributed to ...
... Initial tightening of monetary and fiscal policy The consequential increase in interest rates contributed to ...
Peru_en.pdf
... up to October), although this was less dramatic than in previous years. Total receipts from the general sales tax expanded by 20% in this period, while real receipts from income tax edged up only slightly (mainly on account of lower prices for exports of natural resources). As a result, the central ...
... up to October), although this was less dramatic than in previous years. Total receipts from the general sales tax expanded by 20% in this period, while real receipts from income tax edged up only slightly (mainly on account of lower prices for exports of natural resources). As a result, the central ...
From Poster Child to Basket Case
... the stronger peso made Argentine exports more expensive and helped produce a boom in imports. Through the 1990s, Argentina was fortunate that Brazil had also pegged its currency, the real, to the dollar as an anti-inflation strategy. This move helped shift the bilateral exchange rate more favorably ...
... the stronger peso made Argentine exports more expensive and helped produce a boom in imports. Through the 1990s, Argentina was fortunate that Brazil had also pegged its currency, the real, to the dollar as an anti-inflation strategy. This move helped shift the bilateral exchange rate more favorably ...
Mexico
... • Because of an upcoming presidential election on August 21, 1994, political developments caused an increase in Mexico’s risk premium () due to increases in default risk and exchange rate risk: These events put downward pressure on the value of the peso, Mexico’s central bank had promised to mainta ...
... • Because of an upcoming presidential election on August 21, 1994, political developments caused an increase in Mexico’s risk premium () due to increases in default risk and exchange rate risk: These events put downward pressure on the value of the peso, Mexico’s central bank had promised to mainta ...
Declaración Carta Abierta 17-02
... aspects and denouncing the reduction of the negotiations to the technical-financialeconomic spheres only reinforce the asymmetries between powerful oligarchies and people. This is the reason why we highly value the way chosen by the Greek Government ...
... aspects and denouncing the reduction of the negotiations to the technical-financialeconomic spheres only reinforce the asymmetries between powerful oligarchies and people. This is the reason why we highly value the way chosen by the Greek Government ...
Unit 3: Economic Indicators WebQuest
... Which statistic from this website do you find most interesting? _________________________________ How much is it? ...
... Which statistic from this website do you find most interesting? _________________________________ How much is it? ...
Hyperinflation and state bankruptcies: an acute threat?
... A state is said to have experienced a "credit event" if it can no longer service its debt or requests a payment deferral, or when the maturities of its bonds have to be extended. The threat of a credit event or of default is often foreseen on the market, pulling down bond prices by up to 70% for the ...
... A state is said to have experienced a "credit event" if it can no longer service its debt or requests a payment deferral, or when the maturities of its bonds have to be extended. The threat of a credit event or of default is often foreseen on the market, pulling down bond prices by up to 70% for the ...
Financial Crisis 2008
... NOTE: Depth measures the average percent change from peak to trough for real GDP and real GDI and the average percentage-point change from trough to peak for the unemployment rate. Changes in real GDP and real GDI during the Great Depression are based on annual data. SOURCE: Kevin L. Kliesen’s calcu ...
... NOTE: Depth measures the average percent change from peak to trough for real GDP and real GDI and the average percentage-point change from trough to peak for the unemployment rate. Changes in real GDP and real GDI during the Great Depression are based on annual data. SOURCE: Kevin L. Kliesen’s calcu ...
