This paper provides an extremely stylized model of the workings of a global economy where one of its key driving factors is economic agents’ continuous struggle to find assets to park financial resources. This struggle naturally comes with euphoria and disappointments as many of the 'parking lots' are ...

Economic policies in emerging-market economies (EMEs) are shaped by the structural features and policy challenges of countries on their road to development. Convergence toward income levels of advanced countries is a difficult and bumpy road—it is even uncertain if and when most developing countries ...

Latin American economies have begun to leave behind some of the most primitive sources of macroeconomic fluctuations. Policy concern is gradually shifting toward increasing microeconomic flexibility. This is a welcome trend since microeconomic flexibility, which facilitates the ongoing process of ...

En este artículo se caracteriza el grado de inflexibilidad microeconómica en varios países de América Latina, y se concluye que Brasil, Chile y Colombia son más flexibles que México y Venezuela. Ladiferencia se explica principalmente por el comportamiento de los establecimientos grandes, que seajustan ...

Con los desequilibrios macroeconómicos tradicionales hace tiempo bajo control, el ciclo económico Chileno es determinado principalmente por shocks externos. Más importante aún, la vulnerabilidad externa de Chile es básicamente un problema financiero. Es así como un deterioro en los términos de intercambio ...

Uno de los peores problemas que puede enfrentar el banco central de una economía emergente es la reversión repentina del flujo de capitales. Se pueden acumular reservas internacionales como forma de aminorar el impacto de tal reversión, pero son rara vez suficientes, y siempre costosas de mantener. ...

One of the most serious problems that a central bank in an emerging market economy can face is the sudden reversal of capital inflows (or sudden stops). Hoarding international reserves can be used to smooth the impact of such reversals (see, for example, Lee, 2004), but these reserves are seldom ...

Emerging market economies endure significantly more macroeconomic volatility than industrial countries. Output volatility in emerging market economies is more than twice as large as that in industrial economies, and consumption volatility is three times as large. Recent studies corroborate the view ...