Policy Notes

The Case for Hard Pegs, June 21, 2000

Testimony On Dollarization, June 22, 2000

Public Debt And The Macroeconomy, May 25, 1999

Contagion In Emerging Markets: when Wall Street is a carrier (Technical Supplement to "Understanding the Russian Virus"), May 2, 1999

Abstract: The paper examines the case in which the capital market is populated by informed and uninformed investors. The uninformed try to extract information from informed investors’ trades. This opens up the possibility that if informed investors are forced to sell emerging market securities to meet margin calls, for example, this action may be misread by the uninformed investors as signaling low returns in emerging markets. The paper presents a simple model in which this type of Wall Street confusion may result in a collapse in emerging markets’ output.

Testimony On Full Dollarization, April 22, 1999

On Dollarization, April 20, 1999

Argentina's Dollarization Project: A Primer, February 18, 1999

Understanding The Russian Virus (with special reference to Latin America), October 13, 1998

Capital Flows: Emerging Issues, October 1997