In the early 1970s when he had barely turned thirty years old Vittorio Corbo was already a legend of sorts among development economists. His dissertation at M.I.T. became an instant classic a work that had to be read by anyone interested in understanding the dynamics of inflation in developing nations. ...

Over five years have passed since the most intense phase of the global financial crisis. As has been widely documented the pre-crisis period was characterized by increased dispersion in current account deficits and surpluses facilitated by a benign global financial environment characterized by low ...

One of the most striking features of the world economy over the last twenty-five years has been the sharp decline in the real interest rate from approximately 4% in the early 1990s to -1.5% in 2013 (figure 1). During this period there have been two waves of large capital inflows into emerging economies ...

The increase in global imbalances in the last decade posed a theoretical challenge for international macroeconomics. Why did some less developed countries with a higher need for capital like China lend to richer countries? The inconsistency of standard dynamic open-economy models with actual global ...

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 ...

At the heart of the debate on how the 2007–09 global financial crisis spread from the United States to the rest of the world lies the global banks. Using a large sample composed of advanced and emerging economies since the 1980s Abiad and others (2013) show that the effect of financial linkages on ...

The profitability of currency carry trades in and of itself is 'economic' evidence against the uncovered interest parity (UIP) condition. There is a wide variety of 'statistical' evidence against UIP. Yet the relationship between these two types of evidence and their implications for time variation ...

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 ...

Vittorio Corbo is one of Latin America’s outstanding economists and like some of his peers in the region his contributions and his influence includes academia but goes well beyond academia. While academic economists in developed countries tend to focus more narrowly on research and teaching the diversity ...

It is an honor and a pleasure participating in this conference in honor of Vittorio Corbo. He has been a major contributor to the thinking on economic theory and policy with respect to development as an academic as a World Bank official as a consultant and as Governor of the Banco Central de Chile. I ...