IASE: Strengthening Global Financial Markets.

• Position: Conferences

The NBER and Pontificia Universidade Catolica do Rio de Janeiro (PUC-Rio) jointly sponsored a meeting of the Inter-American Seminar on Economics in Brazil on December 2 and 3. This Seminar focused on "Strengthening Global Financial Markets." NBER Research Associate Sebastian Edwards of University of California, Los Angeles, and Marco Garcia of PUC-Rio, organized the following program:

Joshua Aizenman, University of California at Santa Cruz and NBER, and Ilan Noy, University of Hawaii, "Endogenous Financial and Trade Openness in a Volatile World" Comments: Maria Cristina Terra, Postgraduate School of Economics--Brazil (EPGE), and Thierry Verdier, Centre for Economic Policy Research

Bernardo S. de M. Carvalho, Gavea Investments, and Marcio Garcia, "Ineffective Controls on Capital Inflows under Sophisticated Financial Markets: Brazil in the Nineties" Comments: Gustavo Franco and Marcelo Abreu, PUC-Rio

Sebastian Edwards, "Financial Openness, Crises, and Output Losses" Comments: Edmar Bacha, Bank of Italy, and Marcelo Muinhos, Banco Central do Brasil

Viviana Fernandez, Universidad de Chile, "The International CAPM and a Wavelet-based Decomposition of Value at Risk"

Comments: Marcelo Medeiros, PUC-Rio, and Caio Ibsen, IBMEC Business School-Rio

Ross Levine, NBER and Brown University, and Sergio L. Schmukler, The World Bank. "Internationalization and Stock Market liquidity"

Comments: Ugo Panizza, Inter-American Development Bank, and Eduardo Loyo, IMF

Ricardo J. Caballero, NBER and MIT; Takeo Hoshi, NBER and University of California at San Diego; and Anil K Kashyap, University of Chicago and NBER, "Zombie Lending and Depressed Restructuring in Japan" Comments: Vinicius Carrasco and Walter Novaes, PUC-Rio

Ana Carla A Costa, Banco Central do Brasil, and Joao Manoel Pinho de Mello, PUC-Rio. "Judicial Risk and Creditor Expropriation: Micro Evidence from Brazilian Payroll Loans"

Comments: Renato Flores, EPGE/FGV, and Beny Parnes, PUC-Rio

Eduardo Levy-Yeyati, Universidad Torcuato di Tella, "Liquidity Insurance in Financially Dollarized Economy"

Comments: Marco Bonomo, EPGE, and Alejandro Werner, Subsecretaria de Hacienda y Credito Publico do Mexico

Barry J. Eichengreen, University of California at Berkeley and NBER; and Poonam Gupta and Ashoka Mody, IMF, "Sudden Stops and IMF Programs"

Comments: Ilan Goldfajn, PUC-Rio, and Affonso Celso Pastore, ACPastore & Associados

Aizenman and Noy study the endogenous determination of financial and trade openness when both are volatile. First, they outline channels leading to two-way feedback between the different modes of openness; next, they identify these feedbacks empirically. They find that a...