Financial Vulnerability and Risks to Growth in Emerging Markets

• Published in: NBER Working Paper Series
• Main Authors: Acharya, Viral V, Bhadury, Soumya, Surti, Jay
• Format: Paper
• Language: English
• Published: Cambridge National Bureau of Economic Research, Inc 01.06.2020
• Subjects: Economic theory

This paper introduces a new financial vulnerability index for emerging market economies by exploiting key differences in their business cycles relative to those of advanced economies. Information on the domestic price of risk, cost of dollar hedging and market-based measures of bank vulnerability co...