Are asset price guarantees useful for preventing sudden stops? : a quantitative investigation of the globalization hazard-moral hazard tradeoff / Ceyhun Bora Durdu and Enrique G. Mendoza.
An implication of the "globalization hazard" hypothesis is that sudden stops could be prevented by offering foreign investors price guarantees on emerging markets assets. These guarantees create a tradeoff, however, because they weaken globalization hazard by creating international moral h...
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