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Capital-Market Imperfections and the Macroeconomic Dynamics of Small Indebted Economies

Author

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  • Agenor, P.-R.

Abstract

The present study departs from the conventional approach to world capital-market imperfections by relying on the notion of individual risk, rather than country risk. This difference of emphasis has important implications for the specification of intertemporal optimizing models of small indebted economies. In particular, deviations from uncovered interest parity emerge naturally in the present approach.

Suggested Citation

  • Agenor, P.-R., 1997. "Capital-Market Imperfections and the Macroeconomic Dynamics of Small Indebted Economies," Princeton Studies in International Economics 82, International Economics Section, Departement of Economics Princeton University,.
    • Handle: RePEc:fth:prinfi:82
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    References listed on IDEAS

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    Cited by:

    1. Agenor, Pierre-Richard & McDermott, C John & Prasad, Eswar S, 2000. "Macroeconomic Fluctuations in Developing Countries: Some Stylized Facts," The World Bank Economic Review, World Bank, vol. 14(2), pages 251-285, May.
    2. Agenor, Pierre-Richard & Pizzati, Lodovico, 2005. "Disinflation and the supply side," Journal of Macroeconomics, Elsevier, vol. 27(4), pages 596-620, December.
    3. Hung-ju Chen; Hsiao-tang Hsu, 2004. "The Role of Firm Size in Controlling Output Volatility during the Asian Financial Crisis," Econometric Society 2004 North American Summer Meetings 11, Econometric Society.

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    More about this item

    Keywords

    EXTERNAL FINANCING ; DEBT ; MACROECONOMICS ; FINANCIAL MARKET;
    All these keywords.

    JEL classification:

    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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