Business cycles in emerging economies
Subtitle: the role of interest rates
By: Pablo Neumeyer and Fabrizio Perri.
Contributors: Perri, Fabrizio.
Series: Federal Reserve Bank of Minneapolis, Research Department staff report ;; 335; Staff report (Federal Reserve Bank of Minneapolis. Research Dept. : Online) ;; 335.
Publisher: Federal Reserve Bank of Minneapolis
Published: 2004
Place of publication: [Minneapolis, Minn.]
Language: eng
Format: Electronic resource
Subjects: Business cycles -- Developing countries -- Econometric models.; Interest rates -- Developing countries -- Econometric models.
Description: "We find that in a sample of emerging economies business cycles are more volatile than in developed ones, real interest rates are countercyclical and lead the cycle, consumption is more volatile than output and net exports are strongly countercyclical.  We present a model of a small open economy, where the real interest rate is decomposed in an international rate and a country risk component.  Country risk is affected by fundamental shocks but, through the presence of working capital, also amplifies the effects of those shocks.  The model generates business cycles consistent with Argentine data.  Eliminating country risk lowers Argentine output volatility by 27% while stabilizing international rates lowers it by less than 3%"--Federal Reserve Bank of Minneapolis web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 11/10/2004.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.