European University Institute Library

Macroeconomics in times of liquidity crises, searching for economic essentials, Guillermo Calvo

eng

Includes bibliographical references (pages 217-231) and index

illustrations

index present

non fiction

Macroeconomics in times of liquidity crises

bibliography

946160466

Guillermo Calvo

The Ohlin lectures

searching for economic essentials

"Financial crises are systemic occurring simultaneously in different economies. In this book Guillermo Calvo focuses on liquidity factors as a commonality in financial crises. Specifically, he examines the role of 'liquidity crunch' in triggering crises. Calvo shows that a sharp focus on liquidity reveals some characteristics of liquid assets that are easy to miss otherwise. He considers the role of liquidity and argues for liquidity's centrality, presenting what he calls the 'liquidity approach.' He shows that simple extensions of standard monetary models help rationalize the implications of the liquidity crunch, and then examines slightly more technical models that highlight liquidity issues. He explores the empirical effects of the liquidity crunch by studying Systemic Sudden Stops (of capital inflows) and suggests that they are triggered by liquidity crunch-like phenomena"--, Provided by publisher

Toward the liquidity approach -- Financial crises and the slow mutation of conventional wisdom -- The liquidity approach to financial crises -- Monetary theory : overview and liquidity extensions -- Nominal anchoring with liquid monetary policy assets -- Liquidity crunch/trap : some unconventional output/employment/growth implications