IDEAS home Printed from https://ideas.repec.org/a/bfr/econot/370.html
   My bibliography  Save this article

Original sin in EMEs: less currency risk but more capital flow volatility
[Le « péché originel » dans les pays émergents : diminution du risque de change, mais augmentation de la volatilité des flux de capitaux]

Author

Listed:
  • Justine Pedrono
  • Karine Ishii

Abstract

EMEs have succeeded in overcoming original sin and the resulting currency risk, transferring currency risk to international investors. As international investors are more sensitive to changes in global financial volatility, EMEs now face greater volatility in the ownership of their foreign debt, leading to an original sin redux. Les économies des marchés émergents (EME) sont parvenues à résoudre le « péché originel » et le risque de change associé, en transférant ce risque aux investisseurs internationaux. Ces derniers étant plus sensibles aux variations de la volatilité financière mondiale, les EME sont désormais confrontées à une plus grande volatilité de la détention de leur dette extérieure, conduisant à un retour du péché originel.

Suggested Citation

  • Justine Pedrono & Karine Ishii, . "Original sin in EMEs: less currency risk but more capital flow volatility [Le « péché originel » dans les pays émergents : diminution du risque de change, mais augmentation de la volatilité des flu," Eco Notepad (in progress), Banque de France.
    • Handle: RePEc:bfr:econot:370
    as

    Download full text from publisher

    File URL: https://www.banque-france.fr/en/publications-and-statistics/publications/original-sin-emes-less-currency-risk-more-capital-flow-volatility
    Download Restriction: no
    File URL: https://www.banque-france.fr/fr/publications-et-statistiques/publications/le-peche-originel-dans-les-pays-emergents-diminution-du-risque-de-change-mais-augmentation-de-la
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bfr:econot:370. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michael brassart (email available below). General contact details of provider: https://edirc.repec.org/data/bdfgvfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.