Comments on 'The Global Impact of Risk-Off Shocks'

4 Pages Posted: 22 May 2019

See all articles by Piti Disyatat

Piti Disyatat

Puey Ungphakorn Institute for Economic Research, Bank of Thailand

Date Written: April 2019

Abstract

In this paper, Caballero and Kamber study how monetary policy frameworks influence the impact of risk-off shocks for a broad set of advanced market economies (AEs) and emerging market economies (EMEs). It is a very interesting and thought provoking paper. The key propositions of the paper are: (i) risk-off shocks have become more benign post-Great Financial Crisis for EMEs; (ii) this is attributable to unconventional US policies (so-called policy-put frameworks); and (iii) stronger country fundamentals imply more resilience to risk-off shocks. The overall conclusion is that policy easing in the United States, particularly unconventional ones, has been good for all. This is a good story. But is it too good to be true?

Full Publication: Asia-Pacific Fixed Income Markets: Evolving Structure, Participation and Pricing

Suggested Citation

Disyatat, Piti, Comments on 'The Global Impact of Risk-Off Shocks' (April 2019). BIS Paper No. 102b, Available at SSRN: https://ssrn.com/abstract=3390919

Piti Disyatat (Contact Author)

Puey Ungphakorn Institute for Economic Research, Bank of Thailand ( email )

273 Samsen Road
Bangkhunphrom, Bangkok 10200
Thailand

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