Itay Goldstein, Assaf Razin, 11 March 2013

Broadly speaking, there are three types of economic crisis: banking crises and panics, credit frictions and market freezes, and currency crises. This column argues that features from these types of crises have been at work and interacted with each other to shape the events of the last few years. From an extensive review of literature on these issues, it’s clear that the biggest challenge policymakers and economists face is in developing integrative models that better describing contemporary economic realities.

Eduardo Cavallo, 24 February 2010

Recent evidence suggests that Latin American counties have been shifting their public debt from foreign to domestically issued liabilities. This column argues that the change in debt composition does not guarantee less exposure to external shocks. Without a stable domestic investor base, Latin America will remain vulnerable to swings in global financial markets.

Ricardo Hausmann, Ugo Panizza, 21 February 2010

Is “original sin”, a situation in which the domestic currency is not used to borrow abroad or to borrow long-term even domestically, no longer a problem? This column argues that, while original sin has diminished and countries are making greater use of their domestic bond market, foreign currency debt is still too risky to be sensible.

Events

CEPR Policy Research