Domestic financial frictions and the transmission of foreign shocks in Chile

Abstract: In the early 90’s a literature emerged emphasizing the role of external factors in explaining business cycle fluctuations in emerging countries. In particular, changes in the terms of trade and world interest rates are generally viewed as the main external factors affecting these econo...

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Autores principales: García Cicco, Javier, Kirchner, Markus, Justel, Santiago
Formato: Parte de libro
Lenguaje:Español
Publicado: Banco Central de Chile 2022
Materias:
LIQUIDEZ
ESTABILIDAD ECONOMICA
MACROECONOMIA
BANCOS
Acceso en línea:https://repositorio.uca.edu.ar/handle/123456789/14623
Aporte de:
Repositorio Institucional de la Universidad Católica Argentina (UCA) de Universidad Católica Argentina
id I33-R139-123456789-14623
record_format dspace
spelling I33-R139-123456789-146232024-03-21T10:57:49Z Domestic financial frictions and the transmission of foreign shocks in Chile García Cicco, Javier Kirchner, Markus Justel, Santiago LIQUIDEZ ESTABILIDAD ECONOMICA MACROECONOMIA BANCOS Abstract: In the early 90’s a literature emerged emphasizing the role of external factors in explaining business cycle fluctuations in emerging countries. In particular, changes in the terms of trade and world interest rates are generally viewed as the main external factors affecting these economies. Additionally, part of this literature has also highlighted the role of financial frictions in explaining the propagation of external shocks where these frictions arise in the relationship between foreign lenders and domestic borrowers. The role of country premia, the possibility of sovereign default, and financial dollarization are some of the propagation mechanisms that have been highlighted by this literature. All these features generate a wedge between foreign and domestic interest rates. Given the number of financial and currency crises, as well as episodes of sovereign default, that have affected the emerging world in the 80’s and 90’s, it is not hard to see the relevance of these arguments. 2022-08-11T14:05:01Z 2022-08-11T14:05:01Z 2015 Parte de libro García-Cicco, J., Kirchner, M., Justel, S. Domestic financial frictions and the transmission of foreign shocks in Chile [en línea]. En: Raddatz, C.E., Saravia, E., Ventrua, J. (eds.). Global liquidity, spillovers to emerging markets and policy responses. Santiago de Chile: Banco Central de Chile, 2015 Disponible en: https://repositorio.uca.edu.ar/handle/123456789/14623 978-956-7421-47-3 https://repositorio.uca.edu.ar/handle/123456789/14623 spa Acceso abierto http://creativecommons.org/licenses/by-nc-sa/4.0/ application/pdf Banco Central de Chile Raddatz, C.E., Saravia, E., Ventrua, J. (eds.). Global liquidity, spillovers to emerging markets and policy responses. Santiago de Chile: Banco Central de Chile, 2015 Volumen 20: Serie Banca Central, Análisis y políticas Económicas
institution Universidad Católica Argentina
institution_str I-33
repository_str R-139
collection Repositorio Institucional de la Universidad Católica Argentina (UCA)
language Español
topic LIQUIDEZ
ESTABILIDAD ECONOMICA
MACROECONOMIA
BANCOS
spellingShingle LIQUIDEZ
ESTABILIDAD ECONOMICA
MACROECONOMIA
BANCOS
García Cicco, Javier
Kirchner, Markus
Justel, Santiago
Domestic financial frictions and the transmission of foreign shocks in Chile
topic_facet LIQUIDEZ
ESTABILIDAD ECONOMICA
MACROECONOMIA
BANCOS
description Abstract: In the early 90’s a literature emerged emphasizing the role of external factors in explaining business cycle fluctuations in emerging countries. In particular, changes in the terms of trade and world interest rates are generally viewed as the main external factors affecting these economies. Additionally, part of this literature has also highlighted the role of financial frictions in explaining the propagation of external shocks where these frictions arise in the relationship between foreign lenders and domestic borrowers. The role of country premia, the possibility of sovereign default, and financial dollarization are some of the propagation mechanisms that have been highlighted by this literature. All these features generate a wedge between foreign and domestic interest rates. Given the number of financial and currency crises, as well as episodes of sovereign default, that have affected the emerging world in the 80’s and 90’s, it is not hard to see the relevance of these arguments.
format Parte de libro
author García Cicco, Javier
Kirchner, Markus
Justel, Santiago
author_facet García Cicco, Javier
Kirchner, Markus
Justel, Santiago
author_sort García Cicco, Javier
title Domestic financial frictions and the transmission of foreign shocks in Chile
title_short Domestic financial frictions and the transmission of foreign shocks in Chile
title_full Domestic financial frictions and the transmission of foreign shocks in Chile
title_fullStr Domestic financial frictions and the transmission of foreign shocks in Chile
title_full_unstemmed Domestic financial frictions and the transmission of foreign shocks in Chile
title_sort domestic financial frictions and the transmission of foreign shocks in chile
publisher Banco Central de Chile
publishDate 2022
url https://repositorio.uca.edu.ar/handle/123456789/14623
work_keys_str_mv AT garciaciccojavier domesticfinancialfrictionsandthetransmissionofforeignshocksinchile
AT kirchnermarkus domesticfinancialfrictionsandthetransmissionofforeignshocksinchile
AT justelsantiago domesticfinancialfrictionsandthetransmissionofforeignshocksinchile
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