Trend shocks and sudden stops

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Show simple item record Seoane, Hernán Yurdagul, Emircan 2022-03-28T17:35:48Z 2022-03-28T17:35:48Z 2019-11-01
dc.identifier.bibliographicCitation Seoane, H. D., & Yurdagul, E. (2019). Trend shocks and sudden stops. Journal of International Economics, 121, p. 103252
dc.identifier.issn 0022-1996
dc.description.abstract Sudden Stops are characterized by large output drops, current account reversals and real exchange rate depreci-ation followed by a slow recovery, a pattern that has proven to be hard to capture with standard open economymodels. This paper extends the standard models with endogenous collateral constraints to include permanentincome (trend) shocks and studies the optimal policy design in this setting. Wefind that shocks to the trendplay an important role in generating a Sudden Stop followed by a slow recovery, a result that is also supportedby the data. With trend and transitory shocks, optimal capital control policy is procyclical, although less sothan under transitory shocks only.
dc.description.sponsorship We gratefully acknowledge financial support from MDM 2014-0431, and Comunidad de Madrid, MadEco-CM (S2015/HUM-3444). Seoane gratefully acknowledges financial support from, Ministerio de Ciencia, Innovacion y Universidades (Spain) grant IJCI-2015-24465, "Programa propio de investigación" (PPI-2016-A-54) from Universidad Carlos III de Madrid, and the Ministerio Economía y Competitividad (Spain), grant ECO2016-76818-C3-1-P and ECO2014-56676-C2-1-P. Yurdagul gratefully acknowledges financial support from Ministerio Economía y Competitividad (Spain), grant ECO2015-68615-P., and from the Ministerio de Ciencia, Innovacion y Universidades (FJCI-2016-28864).
dc.language.iso eng
dc.publisher Elsevier
dc.rights © 2019 Elsevier
dc.rights Atribución-NoComercial-SinDerivadas 3.0 España
dc.subject.other Borrowing constraints
dc.subject.other Rend shocks
dc.subject.other Sudden stops
dc.subject.other Optimal capital controls
dc.title Trend shocks and sudden stops
dc.type article
dc.subject.jel F32
dc.subject.jel F34
dc.subject.jel F41
dc.subject.eciencia Economía
dc.rights.accessRights openAccess
dc.relation.projectID Gobierno de España. ECO2014-56676-C2-1-P
dc.relation.projectID Comunidad de Madrid. S2015/HUM-3444
dc.relation.projectID Gobierno de España. ECO2015-68615-P
dc.relation.projectID Gobierno de España. ECO2016-76818-C3-1-P
dc.relation.projectID Gobierno de España. IJCI-2015-24465
dc.relation.projectID Gobierno de España. FJCI-2016-28864
dc.type.version acceptedVersion
dc.identifier.publicationfirstpage 1
dc.identifier.publicationissue 103252
dc.identifier.publicationlastpage 33
dc.identifier.publicationtitle JOURNAL OF INTERNATIONAL ECONOMICS
dc.identifier.publicationvolume 121
dc.identifier.uxxi AR/0000024439
dc.contributor.funder Ministerio de Economía y Competitividad (España)
dc.contributor.funder Ministerio de Ciencia, Innovación y Universidades (España)
dc.contributor.funder Comunidad de Madrid
dc.contributor.funder Universidad Carlos III de Madrid
dc.affiliation.dpto UC3M. Departamento de Economía
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