Asset prices, leverage and portfolio rebalancing drive global capital flows cycle
The amount of leverage—borrowed funds relative to the value of underlying assets—increases for risky holdings during downturns, motivating their ultimate sale to achieve a more secure financial position. The opposite occurs during upswings, as risky assets gain favor.
November 30, 2021
Don’t Look to the 2013 Tantrum for the Effect of Tapering on Emerging Markets
Many emerging markets have improved their external balance sheets since the volatility evidenced during the "taper tantrum" of 2013 and would be much less vulnerable to Federal Reserve tapering today.
August 10, 2021
Emerging-market eeconomies face COVID-19 and a 'sudden stop' in capital flows
A rise in global risk at a time of investor risk aversion led to a rapid flight from emerging-market assets.
April 14, 2020
Southwest Economy, First Quarter 2020
Mexico seeks to reduce consumers' longstanding reliance on cash
Unlike the U.S., where consumers opt to pay with debit and credit cards or via apps, Mexico and its large informal economy continue to rely on hard cash. A new digital payment platform from the nation’s central bank aims to reduce the role of currency.
April 06, 2020
Trade relationships affect U.S. dollar appreciation’s impact across states
The value of the U.S. dollar against other currencies has appreciated, making most goods produced in the U.S. more expensive overseas during the past year.
July 09, 2019