Expectativas cambiarias, selección adversa y liquidez
This paper evaluates the short-term implications of exchange rate expectations in credit markets affected by adverse selection. It presents a model for a credit market in which debt contracts are contingent on the income of borrowers. Since legacy assets are denominated in a foreign currency, contra...
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| Format: | Article |
| Language: | English |
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Universidad Autónoma de Nuevo León, Facultad de Economía
2014-05-01
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| Series: | Ensayos Revista de Economía |
| Subjects: | |
| Online Access: | http://ensayos.uanl.mx/index.php/ensayos/article/view/31 |
| _version_ | 1819041585158946816 |
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| author | Jimmy Melo |
| author_facet | Jimmy Melo |
| author_sort | Jimmy Melo |
| collection | DOAJ |
| description | This paper evaluates the short-term implications of exchange rate expectations in credit markets affected by adverse selection. It presents a model for a credit market in which debt contracts are contingent on the income of borrowers. Since legacy assets are denominated in a foreign currency, contracts are written using these expectations based on the premises of technical analysis. In this model, the adverse exchange rate trend generates public signals which can move the market from one equilibrium, where all firms invest, to another, where only a fraction do, which defines the space for government intervention. Thus, from a policy perspective; if the government wants to restore the credit market by using direct lending programs such as the discount window, it has to increase the size of the program. Otherwise, an overreaction in the interest rate could dry up liquidity and prevent firms from investing. |
| first_indexed | 2024-12-21T09:27:20Z |
| format | Article |
| id | doaj.art-55c77ed3d5a64e7a8161f36a140bc46b |
| institution | Directory Open Access Journal |
| issn | 1870-221X 2448-8402 |
| language | English |
| last_indexed | 2024-12-21T09:27:20Z |
| publishDate | 2014-05-01 |
| publisher | Universidad Autónoma de Nuevo León, Facultad de Economía |
| record_format | Article |
| series | Ensayos Revista de Economía |
| spelling | doaj.art-55c77ed3d5a64e7a8161f36a140bc46b2022-12-21T19:08:51ZengUniversidad Autónoma de Nuevo León, Facultad de EconomíaEnsayos Revista de Economía1870-221X2448-84022014-05-01331276228Expectativas cambiarias, selección adversa y liquidezJimmy Melo0El Colegio de México (COLMEX), Centro de Estudios EconómicosThis paper evaluates the short-term implications of exchange rate expectations in credit markets affected by adverse selection. It presents a model for a credit market in which debt contracts are contingent on the income of borrowers. Since legacy assets are denominated in a foreign currency, contracts are written using these expectations based on the premises of technical analysis. In this model, the adverse exchange rate trend generates public signals which can move the market from one equilibrium, where all firms invest, to another, where only a fraction do, which defines the space for government intervention. Thus, from a policy perspective; if the government wants to restore the credit market by using direct lending programs such as the discount window, it has to increase the size of the program. Otherwise, an overreaction in the interest rate could dry up liquidity and prevent firms from investing.http://ensayos.uanl.mx/index.php/ensayos/article/view/31Análisis TécnicoSelección AdversaExpectativas de Tipo de CambioLiquidez del MercadoDiseño de MecanismosPréstamos Directos del Gobierno |
| spellingShingle | Jimmy Melo Expectativas cambiarias, selección adversa y liquidez Ensayos Revista de Economía Análisis Técnico Selección Adversa Expectativas de Tipo de Cambio Liquidez del Mercado Diseño de Mecanismos Préstamos Directos del Gobierno |
| title | Expectativas cambiarias, selección adversa y liquidez |
| title_full | Expectativas cambiarias, selección adversa y liquidez |
| title_fullStr | Expectativas cambiarias, selección adversa y liquidez |
| title_full_unstemmed | Expectativas cambiarias, selección adversa y liquidez |
| title_short | Expectativas cambiarias, selección adversa y liquidez |
| title_sort | expectativas cambiarias seleccion adversa y liquidez |
| topic | Análisis Técnico Selección Adversa Expectativas de Tipo de Cambio Liquidez del Mercado Diseño de Mecanismos Préstamos Directos del Gobierno |
| url | http://ensayos.uanl.mx/index.php/ensayos/article/view/31 |
| work_keys_str_mv | AT jimmymelo expectativascambiariasseleccionadversayliquidez |