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A Quantative Exploration of the Role of Short-Term Domestic Debit in Balance of Payments Crises

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  • Michael Kumhof

Abstract

October 2000 The quantitative implications of a model of balance of payments crises are explored. The model analyzes government sterilization of capital outflows through low interest rates on domestic debt. This prevents a collapse in money demand but instead leads to a collapse in bond demand and therefore an increase in central bank domestic credit. The theory's implications are consistent with the Mexican experience of 1994, but much less so with Indonesia in 1997 and Brazil in 1998. Keywords: intellectual property rights, copyright, sui generis protection of expressive material, economics of information-goods, open science, "fair use," scientific databases. JEL Classification: H4, K39, O31, O34 -->

Suggested Citation

  • Michael Kumhof, "undated". "A Quantative Exploration of the Role of Short-Term Domestic Debit in Balance of Payments Crises," Working Papers 00017, Stanford University, Department of Economics.
    • Handle: RePEc:wop:stanec:00017
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    File URL: http://www-econ.stanford.edu/faculty/workp/swp00017.pdf
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    References listed on IDEAS

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    Cited by:

    1. Piersanti, Giovanni, 2012. "The Macroeconomic Theory of Exchange Rate Crises," OUP Catalogue, Oxford University Press, number 9780199653126.

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    More about this item

    Keywords

    intellectual property rights; copyright; sui generis protection of expressive material; economics of information-goods; open science;
    All these keywords.

    JEL classification:

    • H4 - Public Economics - - Publicly Provided Goods
    • K39 - Law and Economics - - Other Substantive Areas of Law - - - Other
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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