@article {664324,
	title = {Banking, Trade, and the Making of a Dominant Currency},
	journal = {Quarterly Journal of Economics},
	year = {Forthcoming},
	author = {Gita Gopinath and Jeremy Stein}
}
@article {655500,
	title = {Tariff Passthrough at the Border and at the Store: Evidence from US Trade Policy},
	journal = {American Economic Review: Insights},
	year = {Forthcoming},
	url = {https://www.aeaweb.org/articles?id=10.1257/aeri.20190536},
	author = {Alberto Cavallo and Gita Gopinath and Brent Neiman and Tang, Jenny}
}
@article {651159,
	title = {Dominant Currency Paradigm},
	journal = {American Economic Review },
	volume = {110},
	number = {3},
	year = {2020},
	pages = {677-719},
	url = {https://www.aeaweb.org/articles?id=10.1257/aer.20171201},
	author = {Gopinath, Gita, Emine Boz, Camila Casas, Federico Diez, Pierre-Olivier Gourinchas, Mikkel Plagborg-Moller}
}
@article {651158,
	title = {Cash and the Economy: Evidence from India{\textquoteright}s Demonetization},
	journal = {Quarterly Journal of Economics},
	volume = {135},
	number = {1},
	year = {2020},
	pages = {57{\textendash}103},
	url = {https://doi.org/10.1093/qje/qjz027},
	author = {Chodorow-Reich, Gabriel, Gita Gopinath, Prachi Mishra, Abhinav Narayan}
}
@article {651157,
	title = {Dollar Invoicing and the Heterogeneity of Exchange Rate Pass-Through},
	journal = {American Economic Review, Papers \& Proceedings},
	volume = {109},
	year = {2019},
	pages = {527-32},
	url = {https://www.aeaweb.org/articles?id=10.1257/pandp.20191009},
	author = {Emine Boz, Gita Gopinath, Mikkel Plagborg-Moller}
}
@article {603926,
	title = {Trade Invoicing, Bank Funding, and Central Bank Reserve Holdings},
	journal = {American Economic Review, Papers and Proceedings},
	volume = {108},
	year = {2018},
	pages = {542-46},
	url = {https://www.aeaweb.org/articles?id=10.1257/pandp.20181065},
	author = {Gita Gopinath and Jeremy C. Stein}
}
@article {555396,
	title = {The Macroeconomics of Border Taxes},
	journal = {NBER Macroeconomics Annual},
	year = {2018},
	url = {https://www.nber.org/papers/w24702},
	author = {Omar Barbiero and Emmanuel Farhi and Gita Gopinath and Oleg Itskhoki}
}
@article {651251,
	title = {Evolution or Revolution: Rethinking Macroeconomic Policy},
	journal = {Evolution or Revolution? Rethinking Macroeconomic Policy after the Great Recession},
	year = {2017},
	url = {https://mitpress.mit.edu/books/evolution-or-revolution},
	author = {Olivier Blanchard and Larry Summers}
}
@proceedings {577741,
	title = {Comments on "The Reallocation Myth" by Chang-Tai Hsieh and Pete Klenow},
	journal = {Proceedings of the Jackson Hole Symposium},
	year = {2017},
	author = {Gita Gopinath}
}
@article {577196,
	title = {A Macroeconomic Perspective on Border Taxes},
	journal = {Brookings Papers on Economic Activity},
	year = {2017},
	author = {Gita Gopinath}
}
@article {284236,
	title = {Capital Allocation and Productivity in South Europe},
	journal = {Quarterly Journal of Economics},
	volume = {132},
	number = {4},
	year = {2017},
	month = {2017},
	pages = {1915-1967},
	url = {https://academic.oup.com/qje/article/132/4/1915/3871448},
	author = {Gita Gopinath and Sebnem Kalemli-Ozcan and Loukas Karabarbounis and Carolina Villegas-Sanchez}
}
@inbook {497591,
	title = {A Comment on "From Chronic Inflation to Chronic Deflation" by Guillermo Calvo},
	booktitle = {The State of Economics, The State of the World},
	year = {2016},
	publisher = {MIT Press},
	organization = {MIT Press},
	author = {Gita Gopinath}
}
@proceedings {348721,
	title = {The International Price System},
	journal = {Jackson Hole Symposium Proceedings},
	year = {2016},
	url = {http://www.nber.org/digest/jan16/w21646.html},
	author = {Gita Gopinath}
}
@article {263976,
	title = {Coordination and Crisis in Monetary Unions},
	journal = {Quarterly Journal of Economics},
	volume = {130},
	number = {4},
	year = {2015},
	month = {15 July, 2015},
	pages = {1727-1779},
	url = {http://qje.oxfordjournals.org/content/130/4/1727.full},
	author = {Mark Aguiar and Manuel Amador and Emmanuel Farhi and Gita Gopinath}
}
@article {142526,
	title = {Sovereign Debt Booms in Monetary Unions},
	journal = {American Economic Review P\&P},
	volume = {104},
	number = {5},
	year = {2014},
	pages = {101-06},
	abstract = {We propose a continuous time model to investigate the impact of inflation credibility on sovereign debt dynamics. At every point in time, an impatient government decides fiscal surplus and inflation, without commitment. Inflation is costly, but reduces the real value of outstanding nominal debt. In equilibrium, debt dynamics is the result of two opposing forces: (i) impatience and (ii) the desire to conquer low inflation. A large increase in inflation credibility can trigger a process of debt accumulation. This rationalizes the sovereign debt booms that are often experienced by low inflation credibility countries upon joining a currency union.},
	url = {http://dx.doi.org/10.1257/aer.104.5.101},
	author = {Mark Aguiar and Manuel Amador and Emmanuel Farhi and Gita Gopinath}
}
@article {80966,
	title = {Trade Adjustment and Productivity in Large Crises},
	journal = {American Economic Review},
	volume = {104},
	number = {3},
	year = {2014},
	pages = {793-831},
	abstract = {We empirically characterize the mechanics of trade adjustment during the Argentine crisis. Though imports collapsed by 70 percent from 2000-2002, the entry and exit of firms or products at the country level played a small role. The within-firm churning of imported inputs, however, played a sizeable role. We build a model of trade in intermediate inputs with heterogeneous firms, fixed import costs, and roundabout production. Import demand is non-homothetic and the implications of an import price shock depend on the full distribution of firm-level adjustments. An import price shock generates a significant decline in productivity.\&nbsp;},
	url = {http://dx.doi.org/10.1257/aer.104.3.793},
	author = {Gita Gopinath and Brent Neiman}
}
@inbook {50541,
	title = {International Prices and Exchange Rates},
	booktitle = {Handbook of International Economics, 4th ed.},
	volume = {4},
	year = {2014},
	note = {Preliminary January 2013. \&nbsp;Prepared for the Handbook of International Economics, Vol. IV.},
	pages = {391-451},
	publisher = {Elsevier},
	organization = {Elsevier},
	abstract = {We survey the recent empirical and theoretical developments in the literature on the relation between prices and exchange rates. After updating some of the major findings in the empirical literature we present a simple framework to interpret this evidence. We review theoretical models that generate insensitivity of prices to exchange rate changes through variable markups, both under flexible prices and nominal rigidities, first in partial equilibrium and then in general equilibrium.},
	url = {http://dx.doi.org/10.1016/B978-0-444-54314-1.00007-0},
	author = {Ariel Burstein and Gita Gopinath}
}
@article {16266,
	title = {Fiscal Devaluations},
	journal = {Review of Economic Studies},
	volume = {81},
	number = {2},
	year = {2014},
	pages = {725-760},
	abstract = {We show that even when the exchange rate cannot be devalued, a\&nbsp;small\&nbsp;set of\&nbsp;conventional\&nbsp;fiscal instruments can robustly replicate the real allocations attained under a nominal exchange rate devaluation in a dynamic New Keynesian open economy environment. We perform the analysis under alternative pricing assumptions{\textemdash}producer or local currency pricing, along with nominal wage stickiness; under arbitrary degrees of asset market completeness and for general stochastic sequences of devaluations. There are two types of fiscal policies equivalent to an exchange rate devaluation{\textemdash}one, a uniform increase in import tariff and export subsidy, and two, a value-added tax increase and a uniform payroll tax reduction. When the devaluations are anticipated, these policies need to be supplemented with a consumption tax reduction and an income tax increase. These policies are revenue neutral. In certain cases equivalence requires, in addition, a partial default on foreign bond holders. We discuss the issues of implementation of these policies, in particular, under the circumstances of a currency union.\&nbsp;},
	url = {http://dx.doi.org/10.1093/restud/rdt036},
	author = {Emmanuel Farhi and Gita Gopinath and Oleg Itskhoki}
}
@inbook {272316,
	title = {Comment on Individual Price Adjustment along the Extensive Margin},
	booktitle = {NBER Macroeconomics Annual 2012},
	volume = {27},
	year = {2013},
	publisher = {University of Chicago Press},
	organization = {University of Chicago Press},
	author = {Gita Gopinath}
}
@article {28996,
	title = {Trade Prices and the Global Trade Collapse of 2008-09},
	journal = {IMF Economic Review},
	volume = {60},
	number = {3},
	year = {2012},
	pages = {303-328},
	abstract = {We document the behavior of trade prices during the Great Trade Collapse of 2008-2009 using transaction-level data from the U.S. Bureau of Labor Statistics. First, we find that differentiated manufactures exhibited marked stability in their trade prices during the large decline in their trade volumes. Prices of non-differentiated manufactures, by contrast, declined sharply. Second, while the trade collapse was much steeper among differentiated durable manufacturers than among non-durables, prices in both categories barely changed. Third, despite this lack of movement in average price levels, the frequency and magnitude of price adjustments at the product level noticeably changed with the onset of the crisis.},
	url = {http://dx.doi.org/10.1057/imfer.2012.17},
	author = {Gita Gopinath and Oleg Itskhoki and Brent Neiman}
}
@webarticle {29413,
	title = {Review of Economic Dynamics Newsletter, Volume 13, Issue 1},
	journal = {Interview on Sovereign Default},
	number = {13:1},
	year = {2011},
	month = {November 2011},
	url = {https://www.economicdynamics.org/newsletter-nov-2011/},
	author = {Gita Gopinath}
}
@inbook {16250,
	title = {In Search of Real Rigidities},
	booktitle = { NBER Macroeconomics Annual 2010},
	volume = {25},
	year = {2011},
	publisher = {University of Chicago Press},
	organization = {University of Chicago Press},
	address = {Chicago},
	abstract = {The closed and open economy literatures work on estimating real rigidities, but in parallel. We bring the two literatures together to shed light on this question. We use international price data and exchange rate shocks to evaluate the importance of real rigidities in price setting. We show that consistent with the presence of real rigidities the response of reset-price inflation to exchange rate shocks depicts significant persistence. Individual import prices, conditional on changing, respond to exchange rate shocks prior to the last price change. At the same time aggregate reset-price inflation for imports, like that for consumer prices, depicts little persistence. Competitors prices effect firm pricing and exchange rate pass-through into import prices are greater in response to trade-weighted as opposed to bilateral exchange rate changes. We quantitatively evaluate sticky price models (Calvo and menu cost) with variable markups at the wholesale level and constant markups at the retail level, consistent with empirical evidence. Variable markups alone generate sluggishness in price adjustment and increase the size of the contract multiplier, but their effects are modest.},
	url = {http://papers.nber.org/books/acem10-1},
	author = {Gita Gopinath and Oleg Itskhoki}
}
@article {16249,
	title = {International Prices, Costs and Mark-up differences},
	journal = {American Economic Review},
	volume = {101},
	number = {6},
	year = {2011},
	note = {Previously circulated under the title "Estimating the Border Effect: Some New Evidence".},
	pages = {2450{\textendash}86},
	abstract = {Relative cross-border retail prices, in a common currency, comove closely with the nominal exchange rate. Using product-level prices and wholesale costs from a grocery chain operating in the United States and Canada, we decompose this variation into relative costs and markup components. The high correlation of nominal and real exchange rates is driven mainly by changes in relative costs. National borders segment markets. Retail prices respond to changes in costs in neighboring stores within the same country but not across the border. Prices have a median discontinuous change of 24 percent at the border and 0 percent at state boundaries. (JEL F31, L11, L81)},
	url = {http://dx.doi.org/10.1257/aer.101.6.2450},
	author = {Gita Gopinath and Pierre-Olivier Gourinchas and Chang-Tai Hsieh and Nicholas Li}
}
@article {16252,
	title = {Currency Choice and Exchange Rate Pass-through},
	journal = {American Economic Review},
	volume = {100},
	number = {1},
	year = {2010},
	pages = {304-336},
	abstract = {We show, using novel data on currency and prices for US imports, that even conditional on a price change, there is a large difference in the exchange rate pass-through of the average good priced in dollars (25 percent) versus nondollars (95 percent). We document this to be the case across countries and within disaggregated sectors. This finding contradicts the assumption in an important class of models that the currency of pricing is exogenous. We present a model of endogenous currency choice in a dynamic price setting environment and show that the predictions of the model are strongly supported by the data. (JEL E31, F14, F31)},
	url = {http://dx.doi.org/10.1257/aer.100.1.304},
	author = {Gita Gopinath and Oleg Itskhoki and Roberto Rigobon}
}
@article {16251,
	title = {Frequency of Price Adjustment and Pass-through},
	journal = {Quarterly Journal of Economics},
	volume = {125},
	number = {2},
	year = {2010},
	pages = {675-727},
	abstract = {We empirically document using U.S. import prices that on average goods with a high frequency of price adjustment have a long-run pass-through that is at least twice as high as that of low-frequency adjusters. We show theoretically that this relationship should follow because variable mark-ups that reduce long-run pass-through also reduce the curvature of the profit function when expressed as a function of the cost shocks, making the firm less willing to adjust its price. Lastly, we quantitatively evaluate a dynamic menu-cost model and show that the variable mark-up channel can generate significant variation in frequency, equivalent to 37\% of the observed variation in the data. On the other hand the standard workhorse model with constant elasticity of demand and Calvo or state dependent pricing has difficulty matching the facts.},
	url = {http://dx.doi.org/10.1162/qjec.2010.125.2.675},
	author = {Gita Gopinath and Oleg Itskhoki}
}
@article {16254,
	title = {Investment Cycles and Sovereign Debt Overhang},
	journal = {Review of Economic Studies},
	volume = {76},
	number = {1},
	year = {2009},
	pages = {1-31},
	abstract = {We characterize optimal taxation of foreign capital and optimal sovereign debt policy in a small open economy where the government cannot commit to policy, seeks to insure a risk-averse domestic constituency, and is more impatient than the market. Optimal policy generates long-run cycles in both sovereign debt and foreign direct investment in an environment in which the first best capital stock is a constant. The expected tax on capital endogenously varies with the state of the economy, and investment is distorted by more in recessions than in booms, amplifying the effect of shocks. The government{\textquoteright}s lack of commitment induces a negative correlation between investment and the stock of government debt, a {\textquotedblleft}debt overhang{\textquotedblright} effect. Debt relief is never Pareto improving and cannot affect the long-run level of investment. Furthermore, restricting the government to a balanced budget can eliminate the cyclical distortion of investment.},
	url = {http://dx.doi.org/10.1111/j.1467-937X.2008.00523.x},
	author = {Mark Aguiar and Manuel Amador and Gita Gopinath}
}
@article {16253,
	title = {Expropriation Dynamics},
	journal = {American Economic Review},
	volume = {99},
	number = {2},
	year = {2009},
	pages = {473-479},
	url = {http://dx.doi.org/10.1257/aer.99.2.473},
	author = {Mark Aguiar and Manuel Amador and Gita Gopinath}
}
@article {16255,
	title = {Sticky Borders},
	journal = {Quarterly Journal of Economics},
	volume = {123},
	number = {2},
	year = {2008},
	pages = {531-575},
	abstract = {The stickiness and currency of pricing of traded goods play a central role in international macroeconomics; however, empirical evidence on these features is seriously limited. To address this, we use micro data on U.S. import and export prices at the dock for the period 1994{\textendash}2005 and present four main results: First, the median price duration in the currency of pricing is 10.6 (12.8) months for imports (exports). Second, 90\% (97\%) of imports (exports) are priced in dollars. Consequently, contrary to standard modeling assumptions, for the United States, there is producer currency pricing in exports and local currency pricing in imports. Third, import price rigidity has increased by ten percentage points, with increasing rigidity in differentiated goods prices. Fourth, even conditioning on a price change, exchange rate pass-through into U.S. import prices is low, at 22\%.},
	url = {http://dx.doi.org/10.1162/qjec.2008.123.2.531},
	author = {Gita Gopinath and Roberto Rigobon}
}
@inbook {16264,
	title = {Comment: Marcus Noland, South Korea{\textquoteright}s Experience with International Capital Flows},
	booktitle = {Capital Controls and Capital Flows in Emerging Economies: Policies, Practices, and Consequences},
	year = {2007},
	note = {National Bureau of Economic Research Conference Report, Dec 16-18, 2004.},
	pages = {525-528},
	publisher = {University of Chicago Press},
	organization = {University of Chicago Press},
	address = {Chicago},
	url = {http://www.nber.org/chapters/c0155.pdf},
	author = {Gita Gopinath},
	editor = {Sebastian Edwards}
}
@article {16261,
	title = {Book Review: Barry Eichengreen, Ricardo Hausmann, Other People{\textquoteright}s Money: Debt Denomination and Financial Instability in Emerging Market Economies (2005) The University of Chicago Press, Chicago and London},
	journal = {Journal of International Economics},
	volume = {71},
	number = {1},
	year = {2007},
	note = {Book review.},
	pages = {260-263},
	abstract = {The topic of capital flows to emerging markets (henceforth EM) poses several questions. There is the question of why capital flows to EM{\textquoteright}s are so little, as in\&nbsp;Lucas (1990), just as there is the concern that capital flows might be {\textquoteleft}too much{\textquoteright} as in\&nbsp;Reinhart and Rogoff (2004). The precise costs and benefits to EM{\textquoteright}s in terms of international risk sharing, volatility of real variables, productivity spillovers, among others, are also points of debate (Aguiar and Gopinath, 2006\&nbsp;and\&nbsp;Jeanne and Gourinchas, in press). This book, takes the level of capital flows as given and explores another important set of questions regarding the currency composition and maturity composition of borrowing by EM{\textquoteright}s{\textemdash}namely, why do EM{\textquoteright}s borrow mainly in a foreign currency and at short maturities. This book proposes an intriguing answer and an impressive amount of evidence. However, just as with the other questions, the debate remains unsettled and urges the need for further research.},
	url = {http://dx.doi.org/10.1016/j.jinteco.2006.07.001},
	author = {Gita Gopinath}
}
@article {16256,
	title = {Emerging Market Business Cycles: The Cycle is the Trend},
	journal = {Journal of Political Economy},
	volume = {115},
	number = {1},
	year = {2007},
	note = {Matlab code for program and data files attached.},
	pages = {69-102},
	abstract = {Emerging market business cycles exhibit strongly countercyclical current accounts, consumption volatility that exceeds income volatility, and {\textquotedblleft}sudden stops{\textquotedblright} 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 the information in consumption and net exports to identify the persistence of productivity. We find that shocks to trend growth{\textemdash}rather than transitory fluctuations around a stable trend{\textemdash}are the primary source of fluctuations in emerging markets. The key features of emerging market business cycles are then shown to be consistent with this underlying income process in an otherwise standard equilibrium model.},
	url = {http://dx.doi.org/10.1086/511283},
	author = {Mark Aguiar and Gita Gopinath}
}
@article {16262,
	title = {Book Review: C. Fred Bergsten and John Williamson, eds., Dollar Adjustment: How Far? Against Whom? (2004) Peterson Institute, Washington, DC},
	journal = {Journal of Economic Literature},
	volume = {44},
	number = {1},
	year = {2006},
	pages = {155-156},
	abstract = {In today{\textquoteright}s times, the single most debated question in international policy circles is the fate of the\&nbsp;U.S. dollar and the U.S current account. This book\&nbsp;is a collection of essays on this debate. The papers\&nbsp;were presented at a conference in Washington,\&nbsp;D.C., on May 25, 2004, organized by the Institute\&nbsp;for International Economics. The main questions\&nbsp;that were asked at the time of the conference were\&nbsp;the following: (1) How much further does the dollar need to depreciate? (2) Against which currencies does it need to depreciate? The general\&nbsp;consensus among the authors is that there is a serious misalignment of key national currencies in the\&nbsp;world. The main conclusion is that the dollar\&nbsp;needs to decline by an additional 15 percent or so\&nbsp;and most of this adjustment needs to take place\&nbsp;against Asian currencies. This will require China\&nbsp;to revalue its exchange rate against the dollar by\&nbsp;around 20 percent.},
	url = {http://dx.doi.org/10.1257/002205106776162708},
	author = {Gita Gopinath}
}
@article {16258,
	title = {Defaultable Debt, Interest Rates and the Current Account},
	journal = {Journal of International Economics},
	volume = {69},
	number = {1},
	year = {2006},
	note = {Matlab code for programs attached.},
	pages = {64-83},
	abstract = {World capital markets have experienced large scale sovereign defaults on a number of occasions. In this paper we develop a quantitative model of debt and default in a small open\&nbsp;economy. We use this model to match four empirical regularities regarding emerging markets:\&nbsp;defaults occur in equilibrium, interest rates are countercyclical, net exports are countercyclical,\&nbsp;and interest rates and the current account are positively correlated. We highlight the role of the\&nbsp;stochastic trend in emerging markets, in an otherwise standard model with endogenous default,\&nbsp;to match these facts.},
	url = {http://dx.doi.org/10.1016/j.jinteco.2005.05.005},
	author = {Mark Aguiar and Gita Gopinath}
}
@conference {16257,
	title = {Emerging Market Fluctuations: The Role of Interest Rates and Productivity Shocks},
	booktitle = {Tenth Annual Conference on the Central Bank of Chile, "Current Account and External Financing"},
	year = {2006},
	note = {Bibtex},
	month = {9-10 Nov 2006},
	publisher = {Central Bank of Chile},
	organization = {Central Bank of Chile},
	address = {Santiago, Chile},
	abstract = {In this paper we use a quantitative model to explore the potential frictions that\&nbsp;distinguish emerging market business cycles from developed small open economies. Following Aguiar and Gopinath (2007) we allow total factor productivity (TFP) to have a\&nbsp;stationary and an integrated component. We also allow for shocks to the consumption\&nbsp;and investment Euler Equations that operate through the interest rate. These {\textquotedblleft}wedges{\textquotedblright}\&nbsp;represent changes in the intertemporal marginal rate of transformation, which may be\&nbsp;due to changes in observed interest rates, unobserved borrowing constraints, or other\&nbsp;financial frictions. We estimate the model using data from Mexico and Canada. We\&nbsp;show that interest rate shocks orthogonal to domestic TFP fail to explain the behavior of emerging markets. We then allow for interest rates to respond to/co-vary with\&nbsp;productivity shocks. We find that emerging market business cycles appear to be driven\&nbsp;by large shocks to trend income combined with relatively small transitory shocks that\&nbsp;co-vary with the interest rate.},
	author = {Mark Aguiar and Gita Gopinath}
}
@inbook {16263,
	title = {Comment: Kaminsky, Reinhart, V{\'e}gh. When It Rains, It Pours: Procyclical Capital Flows and Macroeconomic Policies.},
	booktitle = {NBER Macroeconomics Annual 2004},
	volume = {19},
	year = {2005},
	pages = {54-61},
	publisher = {M.I.T. Press},
	organization = {M.I.T. Press},
	address = {Cambridge, MA},
	url = {http://www.nber.org/chapters/c6668.pdf},
	author = {Gita Gopinath},
	editor = {Mark Gertler and Kenneth Rogoff}
}
@article {16259,
	title = {Fire-Sale Foreign Direct Investment and Liquidity Crises},
	journal = {Review of Economics and Statistics},
	volume = {87},
	number = {3},
	year = {2005},
	note = {Bibtext},
	pages = {439-452},
	abstract = {In placing capital market imperfections at the center of emerging market crises, the\&nbsp;theoretical literature has associated a liquidity crisis with low foreign investment and the\&nbsp;exit of investors from the crisis economy. However, a liquidity crisis is equally consistent\&nbsp;with an inflow of foreign capital in the form of mergers and acquisitions (M\&amp;A). To\&nbsp;support this hypothesis, we use a firm-level dataset to show that foreign acquisitions\&nbsp;increased by 91\% in East Asia between 1996 and 1998, while intra-national merger\&nbsp;activity declined. Firm liquidity plays a significant and sizeable role in explaining both\&nbsp;the increase in foreign acquisitions and the decline in the price of acquisitions during\&nbsp;the crisis. This contrasts with the role of liquidity in non-crisis years and in non-crisis\&nbsp;economies in the region. This effect is also most prominent in the tradable sector. Quantitatively, the observed decline in liquidity can explain 25\% of the increase in\&nbsp;foreign acquisition activity in the tradable sectors. The nature of M\&amp;A activity supports\&nbsp;liquidity-based explanations of the East Asian crisis and provides an explanation for the\&nbsp;puzzling stability of FDI inflows during the crises.},
	url = {http://dx.doi.org/10.1162/0034653054638319},
	author = {Mark Aguiar and Gita Gopinath}
}
@article {16260,
	title = {Lending Booms, Sharp Reversals and Real Exchange Rate Dynamics},
	journal = {Journal of International Economics},
	volume = {62},
	number = {1},
	year = {2004},
	note = {Bibtext},
	pages = {1-23},
	abstract = {Emerging markets in the 1990s experienced periods of booms followed by collapses in gross domestic product, consumption, traded and non-traded sector output and real exchange rate movements alongside unprecedented movements in foreign investor participation in these economies. An important feature of these episodes is the asymmetry in the pattern of booms and collapses. We introduce a natural search friction into the foreign investment decision in a small open economy and demonstrate that this can generate the asymmetry observed in the data. The magnitude of the reversals predicted by the model can be quantitatively large and empirically relevant.},
	url = {http://dx.doi.org/10.1016/j.jinteco.2003.08.002},
	author = {Gita Gopinath}
}
