In the 1990s, Sudden Stops in emerging markets were a harbinger of the 2008 global
financial crisis. During these Sudden Stops, countries lost access to credit, which caused …

Credit constraints linking debt to market-determined prices embody a systemic credit
externality that drives a wedge between competitive and constrained socially optimal …

We develop a quantitative equilibrium model of financial crises to assess the interaction
between ex post interventions in credit markets and the buildup of risk ex ante. During a …

Financial globalization had a rocky start in emerging economies hit by Sudden Stops.
Foreign reserves have grown very rapidly since then, as if those countries were practicing a …

Using a sample of emerging markets that are integrated into global bond markets, we
analyze the collapse and recovery phase of output collapses that coincide with systemic …

We analyze the effects of financial and trade globalization on the likelihood of financial
crashes in emerging markets. While trade globalization always makes crashes less likely …

Sudden Stops are financial crises defined by a large, sudden current-account reversal. They
occur in both advanced and emerging economies and result in deep recessions, collapsing …

The paper argues that global financial factors played an important role in the capital-inflow
episode in Emerging Market economies (EMs), during the early part of the 1990s, and …

ABSTRACT The 1990s Sudden Stops in emerging markets were a harbinger for the 2008
global financial crisis. During Sudden Stops, countries lost access to credit, causing abrupt …

Sudden Stops in recent emerging markets crises are characterized by sharp, abrupt current-
account reversals; deep recessions; and price collapses of magnitudes nearly as large as …