Do Local Currency Bond Markets Enhance Financial Stability? | Asian Development Bank

Do Local Currency Bond Markets Enhance Financial Stability?

Publication | October 2018
Do Local Currency Bond Markets Enhance Financial Stability?

This publication analyzes the financial vulnerability of developing countries during the global financial crisis.

This publication analyzes the financial vulnerability of developing countries during the global financial crisis and taper tantrum. It finds that currency depreciation, as a measure of financial vulnerability, was more limited in countries with faster growing local currency bond markets.

Contents 

  • Introduction
  • Recent Developments in Asia's Local Currency Bond Markets
  • Empirical Framework
  • Empirical Findings
  • Conclusion