Our early 2015 research efforts continued this week by building some international ties. Prof Maria Santana-Galego of the University of the Balearic Islands visited the School and met with colleagues the the TRADE and TREES research entities.
On Tuesday she presented a paper on how trade linkages serve as a channel for the transmission of different types of crises (exchange rate, financial, sovereign debt crises). Instead of looking only at the volatility of the exchange rate during a crisis, she considers and controls for different exchange rate regimes.
In the process we learned about two cool resources:
- Iletzky, Reinhart and Rogoff has country chronologies of exchange rate arrangements (link to the pdf, but there is also an Excel file).
- Laeven and Valencia has a classification of crises.
Maria also discussed the gravity model approach with colleagues working on export margins and the identification of export opportunities. We hope to see some co-authored papers in the future.