Browsing by Autor "Arturo Galindo"

Now showing 1 - 6 of 6

A Hellbound Road Paved with Good Intentions: Usury Laws and Bank Competition in Colombia
(RELX Group (Netherlands), 2011) Arturo Galindo; Christian Jaramillo
An Evaluation of the Contractionary Devaluation Hypothesis
(2006) Ricardo Bebczuk; Ugo Panizza; Arturo Galindo
Recent empirical and theoretical literature on the impact of real exchange rate devaluations on economic performance questions the traditional expansionary effect generated within standard Mundell-Fleming models. Contractionary devaluations may arise when firms face maturity or currency mismatches that, when faced with real exchange rate depreciations, lead to balance-sheet effects that erode firms' wealth and lead to an output contraction. While some authors show that the standard Mundell-Fleming result may hold even in the presence of currency mismatches, others point out that, if the balance sheet effect is large enough, devaluations can be contractionary. Using a large panel of 57 countries across the world and various newly constructed measures of dollarization, we test whether the balance sheet effect hypothesis has been relevant during the past decades in explaining economic downturns. Additionally, we explore the channels through which devaluations can be contractionary; in particular, we explore whether investment and consumption decisions are negatively affected by exchange rate devaluations under currency mismatches.
Creditor Protection and Credit Response to Shocks
(Oxford University Press, 2007) Arturo Galindo; Alejandro Micco
This article studies the relationship between creditor protection and credit responses to macroeconomic shocks. Using a data set on legal determinants of finance in a panel of data on aggregate credit growth for 79 countries during 1990–2004, it is shown that credit is more responsive to external shocks in countries with weak legal creditor protection and weak enforcement. The results are statistically and economically significant and robust to alternative measures of creditor protection, to the inclusion of variables that reflect different stages of economic development, to the restriction of the sample to only developing economies, to the controls for systemic crises, to alternative shock measures, and to vector autoregressive specifications.
Mortgage Interest Rates, Country Risk and Maturity Matching in Colombia
(RELX Group (Netherlands), 2007) Arturo Galindo; Marc Hofstetter
Real Exchange Rates, Dollarization and Industrial Employment in Latin America
(2006) José Manuel Montero; Arturo Galindo; Alejandro Izquierdo
This paper uses a panel dataset on industrial employment and trade for 9 Latin American countries for which liability dollarization data at the industrial level is available. It tests whether real exchange rate fluctuations have a significant impact on employment, and analyze whether the impact varies with the degree of trade openness and liability dollarization. Econometric evidence supports the view that real exchange rate depreciations can impact employment growth positively, but this effect is reversed as liability dollarization increases. In industries with high liability dollarization, the overall impact of a real exchange rate depreciation can be negative.
Scarring Recessions and Credit Constraints: Evidence from Colombian Firm Dynamics
(RELX Group (Netherlands), 2010) Marcela Eslava; Arturo Galindo; Marc Hofstetter; Alejandro Izquierdo