Hidden Bibliographic Details
| Other authors / contributors: | Justiniano, Alejandro, 1973- author.
Tchakarov, Ivan, author.
International Monetary Fund. Asia and Pacific Department, issuing body.
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| ISBN: | 1282034162
9781282034167
9781451905991
1451905998
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| Notes: | Includes bibliographical references (pages 25-27).
Restrictions unspecified
Electronic reproduction. [Place of publication not identified] : HathiTrust Digital Library, 2010.
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212
digitized 2010 HathiTrust Digital Library committed to preserve
Print version record.
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| Summary: | This paper develops a small open economy model where entrepreneurs partially finance investment using foreign currency denominated debt subject to a risk premium above and beyond international interest rates. We use Bayesian estimation techniques to evaluate the importance of balance sheet vulnerabilities combined with the presence of the financial accelerator for emerging market countries. Using Korean data, we obtain an estimate for the external risk premium, indicating the importance of the financial accelerator and potential balance sheet vulnerabilities for macroeconomic fluctuations. Furthermore, our estimates of the Taylor rule imply a strong preference to smooth both exchange rate and interest rate fluctuations.
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| Other form: | Print version: Elekdag, Selim. Estimated small open economy model of the financial accelerator. Washington, D.C. : International Monetary Fund, ©2005
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