Authors:

  • Gita Gopinath

Excerpt

Emerging Market Business Cycles: The Cycle is the Trend. Mark Aguiar and Gita Gopinath, 2007, Paper. "Emerging market business cycles exhibit strongly countercyclical current accounts, consumption volatility that exceeds income volatility, and “sudden stops” in capital inflows. These features contrast with developed small open economies. Nevertheless, we show that a standard model characterizes both types of markets. Motivated by the frequent policy regime switches observed in emerging markets, our premise is that these economies are subject to substantial volatility in trend growth. Our methodology exploits..." Link