Liberty Street Economics features insight and analysis from New York Fed economists working at the intersection of research and policy.
This blog post deals with the global effects of the COVID-19 sudden stop in capital flows:
The COVID-19 outbreak has triggered unusually fast outﬂows of dollar funding from emerging market economies (EMEs). These outflows are known as “sudden stop” episodes, and they are typically followed by economic contractions. In this post, we assess the macroeconomic eﬀects of the COVID-induced sudden stop of capital flows to EMEs, using our open-economy DSGE model.