Do Local Currency Bond Markets Enhance Financial Stability?
Published By: Asian Development Bank Institute (ADB) | Published Date: October, 19 , 2018This paper empirically tests conventional wisdom on the stabilizing effect of LCBMs. To do so, it analyses and compare the financial vulnerability of developing countries during two episodes of financial stress—global financial crisis and taper tantrum. During the two episodes, the paper finds a negative association between the growth of LCBMs and the degree of currency depreciation in emerging economies. Similar association is found of bank loans but not for the stock market.
Author(s): Donghyun Park, Kwanho Shin, Shu Tian | Posted on: Oct 26, 2018 | Views() | Download (324)