; ; ; "ActiveFedora::Aggregation::ListSource" . a , ; "Margin Calls, Trading Costs, and Asset Prices in Emerging Markets: The Financial Mechanics of the 'Sudden Stop' Phenomenon"; ; "batchuser@example.com"; "Smith, Katherine A.", "Mendoza, Enrique G., 1963-"; "Collateral constraints", "Margin calls", "Asset pricing", "Fisherian deflation", "Sudden stops", "Emerging markets", "Trading costs", "Open economy asset pricing", "Nonlinear dynamics"; "D52 - Incomplete Markets", "F32 - Current Account Adjustment; Short-term Capital Movements", "E44 - Financial Markets and the Macroeconomy", "F41 - Open Economy Macroeconomics"; "\"Sudden Stops \" experienced during emerging markets crises are characterized by large reversals of capital inflows and the current account, deep recessions, and collapses in asset prices. This paper proposes an open-economy equilibrium asset pricing model in which financial frictions cause Sudden Stops. Margin requirements impose a collateral constraint on foreign borrowing by domestic agents and trading costs distort asset trading by foreign securities firms. At equilibrium, margin constraints may or may not bind depending on portfolio decisions and equilibrium asset prices. If margin constraints do not bind, productivity shocks cause a moderate fall in consumption and a widening current account deficit. If debt is high relative to asset holdings, the same productivity shocks trigger margin calls forcing domestic agents to fire-sell equity to foreign traders. This sets off a Fisherian asset-price deflation and subsequent rounds of margin calls. A current account reversal and a collapse in consumption occur when equity sales cannot prevent a sharp rise in net foreign assets."^^; "2003-04"; "2018-03-29T18:19:52.221756887+00:00"^^; ; "2021-01-27T16:24:31.897263013+00:00"^^; "Conference Proceeding"; "737", "515"; "Advances in dynamic economics"; "Nonlinear dynamics", "Sudden stops", "Asset pricing", "Margin calls", "Collateral constraints", "Open economy asset pricing", "Fisherian deflation", "Emerging markets", "Trading costs"; ; ; ; ; "Federal Reserve Bank of Minneapolis. Research Department."; ; "ConferenceProceeding" . ; .