Emerging Markets Finance and Trade ( IF 4.859 ) Pub Date : 2019-12-24 , DOI: 10.1080/1540496x.2019.1696190 Donghyun Park 1 , Kwanho Shin 2 , Shu Tian 1
ABSTRACT
It is widely believed that local currency bond markets (LCBMs) can promote financial stability in emerging markets. In this article, we empirically test such conventional wisdom by analyzing and comparing six measures of financial vulnerability of emerging markets during two episodes of financial stress – global financial crisis and taper tantrum. We find that emerging markets, which experienced greater expansion of their LCBMs between the two episodes, experienced a greater improvement in financial stability, indicating a stabilizing role of LCBMs. Our evidence indicates that a gradual expansion of bank loans but not stock market development may also contribute to financial stability.
中文翻译:
当地货币债券市场会增强金融稳定性吗?一些经验证据
摘要
人们普遍认为,本币债券市场(LCBM)可以促进新兴市场的金融稳定。在本文中,我们通过分析和比较在两次金融压力事件(全球金融危机和逐渐减少的发脾气)期间新兴市场的金融脆弱性的六种衡量标准,对上述传统观点进行经验检验。我们发现,新兴市场在两次事件之间经历了更大程度的LCBM扩张,但金融稳定性有了更大的改善,这表明LCBM具有稳定的作用。我们的证据表明,逐步扩大银行贷款而不是逐步发展股票市场也可能有助于金融稳定。