Entradas de capital: el papel de los controles

Este escrito analiza el manejo de las entradas de capital en los mercados emergentes. Revisa las principales herramientas de política, incluidas la política fiscal y monetaria, la política cambiaria, la intervención en el mercado de cambios, la regulación prudencial doméstica y los controles al capital. Una conclusión clave es que si la economía funciona cerca del potencial, el nivel de reservas es adecuado, la tasa de cambio no está subvaluada y es probable que las entradas sean transitorias, el uso de controles al capital –además de la política prudencial y macroeconómica– se justifica como parte del conjunto de herramientas de política para manejar las entradas. La evidencia de la crisis actual sugiere que los controles encaminados a lograr una estructura de obligaciones externas menos riesgosa redujeron la fragilidad financiera y aumentaron la resiliencia ante caídas del crecimiento

Fiscal Fatigue, Fiscal Space and Debt Sustainability in Advanced Economies

How high can public debt rise without compromising fiscal solvency? We answer this question using a stochastic ability-to-pay model of sovereign default in which risk-neutral investors lend to a government that displays “fiscal fatigue,” because its ability to increase primary balances cannot keep pace with rising debt. As a result, the government faces an endogenous debt limit beyond which debt cannot be rolled-over. Using data for 23 advanced economies over 1970–2007, we find evidence of a fiscal reaction function with these features, and use it to compute “fiscal space,” defined as the difference between projected debt ratios and debt limits.

Entradas de capital: el papel de los controles

This paper analyzes the management of surges in capital inflows to Emerging Markets. It reviews the main policy tools, including fiscal and monetary policy, exchange rate policy, foreign exchange market intervention, domestic prudential regulation, and capital controls. A key conclusion is that, if the economy is operating near potential, if the level of reserves is adequate, if the exchange rate is not undervalued, and if the flows are likely to be transitory, then use of capital controls –in addition to both prudential and macroeconomic policy– is justified as part of the policy toolkit to manage inflows. Evidence from the current crisis suggests that controls aimed at achieving a less risky external liability structure reduced financial fragilities and increased growth resilience.capital inflows, capital controls, financial crisis

Effect of Body Mass Index on work related musculoskeletal discomfort and occupational stress of computer workers in a developed ergonomic setup

<p>Abstract</p> <p>Background</p> <p>Work urgency, accuracy and demands compel the computer professionals to spend longer hours before computers without giving importance to their health, especially body weight. Increase of body weight leads to improper Body Mass Index (BMI) may aggravate work related musculoskeletal discomfort and occupational-psychosocial stress. The objective of the study was to find out the effect of BMI on work related musculoskeletal discomforts and occupational stress of computer workers in a developed ergonomic setup.</p> <p>Methods</p> <p>A descriptive inferential study has been taken to analyze the effect of BMI on work related musculoskeletal discomfort and occupational-psychosocial stress. A total of 100 computer workers, aged 25-35 years randomly selected on convenience from software and BPO companies in Bangalore city, India for the participation in this study. BMI was calculated by taking the ratio of the subject's height (in meter) and weight (in kilogram). Work related musculoskeletal discomfort and occupational stress of the subjects was assessed by Cornell University's musculoskeletal discomfort questionnaire (CMDQ) and occupational stress index (OSI) respectively as well as a relationship was checked with their BMI.</p> <p>Results</p> <p>A significant association (p < 0.001) was seen among high BMI subjects with their increase scores of musculoskeletal discomfort and occupational stress.</p> <p>Conclusion</p> <p>From this study, it has been concluded that, there is a significant effect of BMI in increasing of work related musculoskeletal discomfort and occupational-psychosocial stress among computer workers in a developed ergonomic setup.</p

Exchange rate dynamics, balance sheet effects, and capital flows. A Minskyan model of emerging market boom-bust cycles

The paper provides a Minskyan open economy model of endogenous boom-bust cycles in emerging market economies, which explains the empirically observed procyclicality of exchange rates and the countercyclicality of the trade balance. It highlights the interaction of flexible exchange rate dynamics with balance sheets. Currency appreciation improves the net worth of firms with foreign currency debt, giving a boost to investment. Throughout the boom phase, the trade balance worsens. Pressures on the domestic exchange rate mount until the currency depreciates. Contractionary balance sheet effects then set in as domestic firms face a drop in their net worth. If capital inflows are driven by exogenous risk appetite, fluctuations can assume the form of shock-independent endogenous cycles. An increase in risk appetite raises the volatility of the cycle. Financial account regulation can reduce macroeconomic volatility, but the larger the risk appetite, the more financial account regulation is required to achieve this