Annual Conference

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International Macroeconomics, Money & Banking

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May 2023

Foreign Reserves and Capital Controls: Role of Financial Development

Chang MA, Hidehiko MATSUMOTO
This paper develops a small-open-economy model to study optimal capital controls and foreign reserve policy. Private agents hold reserves to prepare for a liquidity shock that requires them to repay a part of outstanding foreign debt before new borrowing. A firesale externality associated with asset...
Keywords: capital controls, Foreign Reserves, Sudden Stops, Liquidity Crisis
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Annual Conference

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International Macroeconomics, Money & Banking

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May 2024

Foreign Discount in International Corporate Bonds

Zhe GENG
In the dollar-denominated corporate bond market, 42% of bonds with an amount outstanding of USD 5.9 Trillion are issued by non-US firms. Despite the increasing importance of cross-border financing, foreign issuers are paying an extra premium of 22 bps, compared with their US counterparts. A similar ...
Keywords: international corporate bonds, foreign discount, foreign squeeze, economic political uncertainty, home bias
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Webinar Series

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Pandemic

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Jun 2020

Food Security and Human Mobility During the COVID-19 Lockdown

Prithwiraj (Raj) CHOUDHURY, Tarun KHANNA, Wesley W. KOO, Xina LI, Nishant KISHORE, Satchit BALSARI
During the COVID-19 crisis, millions of migrants around the world face food insecurity. This could force migrants to travel during the pandemic, exposing them to health risks and accelerating the spread of the virus. Anecdotal evidence demonstrates the importance of enforcing food security policies ...
Keywords: COVID-19, Migrants, Food Security, Mobility, Health Pandemics, Food, Distribution, policy, Global Range
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AMPF Papers

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Policy Note

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May 2023

Fiscal Events and Anchored Inflation Expectations

Ethan ILZETZKI
With inflation surging worldwide, some commentators have speculated whether inflation expectations have become unanchored. This policy note presents a framework to evaluate whether an inflationary spike is due to temporary shifts in policy or the real economy on one hand, or due to an unanchoring of...
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Annual Conference

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International Macroeconomics, Money & Banking

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May 2023

Fiscal Deficits and Inflation Risks: The Role of Fiscal and Monetary Regimes

Ryan BANERJEE, Valerie BOCTOR, Aaron MEHROTRA, Fabrizio ZAMPOLLI
Using data from a panel of advanced economies over four decades, we show that the inflationary effect of fiscal deficits crucially depends on the prevailing fiscal-monetary policy regime. Under fiscal dominance, defined as a regime in which the government does not adjust the primary balance to stabi...
Keywords: Fiscal deficit, inflation, fiscal policy regime, monetary policy regime, monetary policy independence
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