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We investigate in a sample of 53 emerging markets over 1980-2014 whether countries with open capital accounts are necessarily at the mercy of global events, or are able to take policy actions when receiving inflows to mitigate the impact of a subsequent reversal. Our analysis suggests that, while changes in global conditions have an important bearing on crisis susceptibility, countries that allow the buildup of macroeconomic and financial vulnerabilities during boom times, and which receive mostly debt flows, are significantly more likely to see capital inflow surge episodes end in a financial crisis. [ABSTRACT FROM AUTHOR]

The workhorse open-economy macro model suggests that capital inflows are contractionary because they appreciate the currency and reduce net exports. Emerging market policy makers, however, believe that inflows lead to credit booms and rising output; the evidence appears to go their way. To reconcile theory and reality, we extend the set of assets in the Mundell-Fleming model to include both bonds and non-bonds. At a given policy rate, inflows may decrease the rate on non-bonds, stimulating financial intermediation and, potentially, output as well. We explore the implications, and find support for the key predictions in the data. [ABSTRACT FROM AUTHOR]

How should emerging market countries handle surges in capital inflows that may pose both prudential and macroeconomic policy challenges? We review the arguments on the appropriate management of inflow surges and discuss the conditions under which controls on capital inflows may be appropriate. We argue that if the economy is operating near potential, if reserves are adequate, if the exchange rate is not undervalued, and if the flows are likely to be transitory, then controls on capital inflows-together with macroeconomic policy adjustment and prudential measures-may usefully form part of the policy toolkit. [ABSTRACT FROM AUTHOR]

This paper analyzes the management of surges in capital inflows to Emerging Markets. It reviews the main policy tools, including fiscal and monetary policy, exchange rate policy, foreign exchange market intervention, domestic prudential regulation, and capital controls. A key conclusion is that, if the economy is operating near potential, if the level of reserves is adequate, if the exchange rate is not undervalued, and if the lows are likely to be transitory, then use of capital controls --in addition to both prudential and macroeconomic policy-- is justified as part of the policy toolkit to manage inflows. Evidence from the current crisis suggests that controls aimed at achieving a less risky external liability structure reduced financial fragilities and increased growth resilience. [ABSTRACT FROM AUTHOR]

Using density functional theory we have predicted new chromium carbide (CrC) monolayers with unique intrinsic ferromagnetism, high Curie temperature and high spin polarization. The 2D h-CrC emerges as graphene like planer structure, while t-CrC comes out as a buckled structure. The ab-initio molecular dynamics simulation and phonon dispersion spectra show that 2D CrC monolayers possess excellent thermal and dynamical stabilities and thus have promise for experimental synthesis. The h-CrC monolayer exhibits half-metallicity with 100% spin polarization, whereas t-CrC monolayer is 57.4% spin polarized with metallic nature. Both the monolayers possess hard ferromagnetism along with high Curie temperature (730 K and 280 K for h-CrC and t-CrC, respectively) as calculated by Quantum Monte Carlo simulations. Bias dependent spin resolved electronic transport reveals 100% spin filtering efficiency (SFE) of 2D h-CrC, whereas the t-CrC sheet achieve SFE upto 98.5%. All these properties confirm the CrC monolayers as potential candidates for spintronic devices. [Display omitted] • 2D h-CrC emerges as planer structure, while t-CrC comes out as a buckled structure. • AIMD simulation and phonon spectra show excellent thermal and dynamical stabilities. • D h-CrC exhibits half-metallicity whereas t-CrC possesses metallic nature. • Both of the monolayers possess hard ferromagnetism along with high Curie temperature. • Electronic transport calculation reveals 100% SFE of 2D h-CrC and 98.5% SFE of t-CrC. [ABSTRACT FROM AUTHOR]

This paper presents two approaches to modeling the use of IMF resources from the General Resources Account in order to gauge whether the recent decline in credit outstanding is a temporary or a permanent phenomenon. The two approaches—the time-series behavior of credit outstanding and a two-stage program selection and access model—yield the same conclusion: the use of IMF resources is likely to decline sharply. Specifically, credit outstanding is projected to decline from an average of SDR 50 billion over 2000–05 to an average of about SDR 8 billion over 2006–10. Stochastic simulations suggest that it is unlikely to be much higher. These results are based on the IMF's World Economic Outlook projections with a correction for historically observed overoptimistic biases. In addition, alternative scenarios assuming weaker economic performance or a less benign global economic environment do not materially alter these results.IMF Staff Papers (2008) 55, 1–49; doi:10.1057/palgrave.imfsp.9450031 [ABSTRACT FROM AUTHOR]

This paper examines the role of structural factors—governance and rule of law, corporate sector governance (creditor rights and shareholder rights), corporate financing structure—as well as macroeconomic variables in currency crises. Using a technique known as a binary recursive tree allows for interactions between the various explanatory variables. It is found that structural vulnerabilities play an important role in the occurrence of "deep" currency crises (those with a real GDP growth decline of at least 3 percentage points) and that there are complex interactions between these structural vulnerabilities and macroeconomic imbalances. [ABSTRACT FROM AUTHOR]

We develop a model of economic development in which culture and technology interact to devermine savings, investment, and growth. Investment is assumed to involve intermediation or other costs that may, in any period, result in either of two equilibria for the savings rate. At the good equilibrium, aggregate savings, the savings rate, and growth are all higher than at the bad equilibrium. Whether the country falls into this savings trap depends on each individual's belief about the savings behavior of others in the economy. Goverment policies that coordinate savings and facilitate investment can influence whether the country escapes the trap. [ABSTRACT FROM AUTHOR]

Once a popular colonial monetary arrangement, currency boards fell into disuse as countries gained political independence. But recently, currency boards have made a remarkable come-back. This essay takes a critical look at their performance. Are currency boards really a panacea for achieving low inflation and high growth? Or do they merely provide a 'quick fix' allowing authorities to neglect fundamental reforms and thus fail to yield lasting benefits? We have three major findings. First, the historical track record of currency boards is sterling, with few instances of speculative attacks and virtually no 'involuntary' exits. Countries that did exit from currency boards did so mainly for political, rather than economic reasons, and such exits were usually uneventful. Second, modern currency boards have often been instituted to gain credibility following a period of high or hyperinflation, and in this regard, have been remarkably successful. Countries with currency boards experienced lower inflation and higher (if more volatile) GDP growth compared to both floating regimes and simple pegs. The inflation difference reflects both a lower growth rate of money supply (a 'discipline effect'), and a faster growth of money demand (a 'credibility effect'). The GDP growth effect is significant, but may simply reflect a rebound from depressed levels. Third, case studies reveal the successful introduction of a currency board to be far from trivial, requiring lengthy legal and institutional changes, as well as a broad economic and social consensus for the implied commitment. Moreover, there are thorny issues, as yet untested, regarding possible exits from a currency board. Thus currency boards do not provide easy solutions. But if introduced in the right circumstances, with some built-in flexibility, they can be an important tool for gaining credibility and achieving macroeconomic stabilization. [ABSTRACT FROM AUTHOR]

Examines export instability, or the uncertainty about the export earnings accruing to a country, and the external balance in developing countries. Export instability as an important source of macroeconomic uncertainty in many developing countries; Results suggesting that developing countries have responded to increases in export instability by building up precautionary savings balances.

Examines the capital flows among major industrialized countries with a view to assessing Feldstein and Harioka's claim that international capital mobility is limited. Tests of capital mobility based on the savings-investment correlations; Intertemporal approach to the current account.

A monocotyledonous tree, Roystonea regia, was found to bear root nodules. The root nodules contained a high amount (16.9 μg/g fresh mass) of indole acetic acid (IAA). A big tryptophan pool (1555.1 μg/g fresh mass) was found in the root nodules, which might serve as a source of IAA production. The presence of IAA-metabolizing enzymes IAA oxidase and peroxidase indicated metabolism of IAA in the root nodules. The symbiont isolated from the root nodules of R. regia, a Rhizobium sp., produced high amount of IAA in culture when supplemented with tryptophan. The possible role of this IAA production in the monocotyledonous tree– Rhizobium symbiosis is discussed. [ABSTRACT FROM AUTHOR]