000			03144cam a22003737 4500
001			w16260
003			NBER
005			20211020111108.0
006			m o d
007			cr cnu||||||||
008			210910s2010 mau fo 000 0 eng d
100	1		_aAizenman, Joshua. _94613
245	1	0	_aExchange Market Pressure and Absorption by International Reserves: _bEmerging Markets and Fear of Reserve Loss During the 2008-09 Crisis / _cJoshua Aizenman, Michael M. Hutchison.
260			_aCambridge, Mass. _bNational Bureau of Economic Research _c2010.
300			_a1 online resource: _billustrations (black and white);
490	1		_aNBER working paper series _vno. w16260
500			_aSeptember 2010.
520	3		_aThis paper evaluates how the global financial crisis emanating from the U.S. was transmitted to emerging markets. Our focus is on the extent that the crisis caused external market pressures (EMP), and whether the absorption of the shock was mainly through exchange rate depreciation or the loss of international reserves. Controlling for variety of factors associated with EMP, we find clear evidence that emerging markets with higher total foreign liabilities, including short- and long-term debt, equities, FDI and derivative products--had greater exposure and were much more vulnerable to the financial crisis. Countries with large balance sheet exposure -- high external portfolio liabilities exceeding international reserves--absorbed the global shock by allowing greater exchange rate depreciation and comparatively less reserve loss. Despite the remarkable buildup of international reserves by emerging markets during the period prior to the financial crisis, countries relied primarily on exchange rate depreciation rather than reserve loss to absorb most of the exchange market pressure shock. This could reflect a deliberate choice ("fear of reserve loss" or competitive depreciations) or market actions that caused very rapid exchange rate adjustment, especially in emerging markets with open capital markets, overwhelming policy actions.
530			_aHardcopy version available to institutional subscribers
538			_aSystem requirements: Adobe [Acrobat] Reader required for PDF files.
538			_aMode of access: World Wide Web.
588	0		_aPrint version record
690		7	_aF15 - Economic Integration _2Journal of Economic Literature class.
690		7	_aF31 - Foreign Exchange _2Journal of Economic Literature class.
690		7	_aF32 - Current Account Adjustment • Short-Term Capital Movements _2Journal of Economic Literature class.
690		7	_aF34 - International Lending and Debt Problems _2Journal of Economic Literature class.
690		7	_aF4 - Macroeconomic Aspects of International Trade and Finance _2Journal of Economic Literature class.
700	1		_aHutchison, Michael M.
710	2		_aNational Bureau of Economic Research.
830		0	_aWorking Paper Series (National Bureau of Economic Research) _vno. w16260.
856	4	0	_uhttps://www.nber.org/papers/w16260
856			_yAcceso en línea al DOI _uhttp://dx.doi.org/10.3386/w16260
942			_2ddc _cW-PAPER
999			_c331801 _d290363