Credit, Prices, and Crashes: Business Cycles with a Sudden Stop

By Enrique G. Mendoza. 2001

350 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/780ddd4bf916b4d64aaa335194061211c6b7e068

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

In Finance

Citations in the corpus

The New Economics of Prudential Capital Controls: A Research Agenda (2011, methodology): “…emerging economies can be understood as episodes of financial amplification (see, for example, Krugman, 1999; Aghion, Bacchetta, and Banerjee, 2000; Mendoza, 2002, among many others): when emerging economies experience shocks that lead to a decline in aggregate demand, their exchange rates…”
Regulating Capital Flows to Emerging Markets: An Externality View (2018, methodology): “Following Mendoza (2005) we set the relative size of the tradable sector to 1 1+σ = .”
Precautionary Demand for Foreign Assets in Sudden Stop Economies: An Assessment of the New Merchantilism (2007, positive): “…aim to explore the implications of these three determinants of precautionary savings was motivated by the promising results obtained in the existing literature that has examined the role of each factor separately (see Fogli and Perri (2006), Mendoza et al. (2007), Mendoza (2002) and Durdu (2007)).”
Sudden stops and the Mexican wave: Currency crises, capital flow reversals and output loss in emerging markets (2004, positive): “Recent theoretical literature, following the work of Calvo (1998) and Calvo and Reinhart (2000), emphasizes the linkages between Sudden Stops and output losses (e.g. Aghion et al., 2001; Mendoza, 2001; and Gopinath, 2001).”
Why Should Emerging Economies Give Up National Currencies?: A Case for "Institutions Substitution" (2002, background): “Mendoza (2002) and Parsley (2001) show evidence of sharp changes in the relative price of nontradable goods for Hong Kong, Korea and Mexico.”
The Optimal Level of International Reserves For Emerging Market Countries: A New Formula and Some Applications (2011, neutral): “Note that if (2) is binding, the country maintains, in normal times, a constant ratio of short-term debt to GDP, given by = L n t Y n t = 1 + g 1 + r : (13) The optimal level of reserves maximizes the expected utility of period t + 1 consumption, R t = arg max(1 t )u(C n t+1 ) + t u(C s t+1 ); (14)…”
Breaking Free of the Triple Coincidence in International Finance (2016, background): “The bank may be headquartered in London, Paris or Frankfurt, but the liabilities on its balance sheet are in New York and the 4 Mendoza (2002) models debt denominated in traded goods prices in a non-monetary economy, but the debt is held in the household sector.”
Credit Frictions and 'Sudden Stops' in Small Open Economies: An Equilibrium Business Cycle Framework for Emerging Markets Crises (2002, neutral): “This model is calibrated and solved in Mendoza and Smith (2001) using similar parameters as in Mendoza (2002).”
Liability Dollarization and the Bank Balance Sheet Channel (2002, background): “Mendoza [36] shows that when foreign debt is denominated in traded goods, a real exchange rate depreciation can reduce the value of collateral and lead to sudden out® ows of capital.”
A Fisherian approach to financial crises: Lessons from the Sudden Stops literature (2020, neutral): “This DTI constraint was proposed by Mendoza (2002) in a study examining the feedback between real-exchange-rate movements and borrowing capacity.”
Overborrowing, Financial Crises and ‘Macro-Prudential’ Policy? (2011, neutral): “Mendoza and Quadrini (2010) document that about 1/2 of the surge in net credit in the U.”