The Instability of the Emerging Market Assets Demand Schedule
AbstractThis paper addresses the nature of the demand schedule for emerging market assets in both its macroeconomic and microeconomic dimensions. The former is usually analysed in terms of the 'push factors' (such as interest rates or contagion) determining international capital flows; while the latter is normally approached through the portfolio composition decisions (such as herding or risk appetite) of investment managers. Bringing these two perspectives together contributes to an understanding of how sudden shifts in the demand schedule can cause large and asymmetric shocks for emerging market countries. Official interventions by agencies such as the IMF focus on 'supply' interventions (such as improving information or avoiding default) and neglect the need to stabilise demand. The chapter suggests that official intervention is required in order to stabilise and lengthen demand schedules, and thus construct an orderly international market in emerging market assets.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Queen Elizabeth House, University of Oxford in its series QEH Working Papers with number qehwps91.
Date of creation:
Date of revision:
Contact details of provider:
Postal: Queen Elizabeth House 3 Mansfield Road, Oxford, OX1 3TB United Kingdom
Phone: +44 (1865) 281800
Fax: +44 (1865) 281801
Web page: http://www.qeh.ox.ac.uk/
More information through EDIRC
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-03-03 (All new papers)
- NEP-IFN-2003-03-03 (International Finance)
- NEP-MAC-2003-03-03 (Macroeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Agenor, Pierre-Richard, 1998. "The Surge in Capital Flows: Analysis of 'Pull' and 'Push' Factors," International Journal of Finance & Economics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 3(1), pages 39-57, January.
- Market demand schedule in Wikipedia English ne '')
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rachel Crawford).
If references are entirely missing, you can add them using this form.