Cavallo, Eduardo, Powell, Andrew.
As emerging markets slow, the fear of ‘sudden stops’ in capital flows is rising. This column presents a new taxonomy of Sudden Stops that is founded on the behaviour of gross and net capital flows. The results raise several puzzles. Given continued financial globalisation, how developing and advanced economies can protect themselves at minimum cost remains a critical topic for researchers and policymakers.
Πηγή: Voxeu