Disequilibria and Risk Premia
Disequilibria and Risk Premia
Argentina’s Experience During the 2000s from a Latin American Perspective
the chapter elaborates on the sources of risk that arise from the interaction of the goods and financial markets by revisiting Frenkel’s work on exchange rate and sovereign risk premia. The authors dispute the narrow view that states that a run on the domestic currency or a rising sovereign risk premium are always caused by an increase of the foreign debt or a decline in international reserves. Market disequilibrium dynamics may not only be driven by these factors but also by declining incentives to invest.
Keywords: sovereign risk premia, external debt, run on domestic currency, investment incentives, market disequilibrium
Columbia Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.
Please, subscribe or login to access full text content.
If you think you should have access to this title, please contact your librarian.
To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us .
