Research Discussion Paper – RDP 2004-03 Fear of Sudden Stops: Lessons from Australia and Chile


This paper is a revised version of the paper prepared for the Financial Dedollarization: Policy Options conference at the Inter-American Development Bank, 1–2 December 2003. The views expressed in this paper are those of the authors and should not be attributed to the IADB, the Reserve Bank of Australia or any other institution with which they are affiliated. We thank Guy Debelle, Luci Ellis, Darren Flood, Ilan Goldfajn, Simon Guttmann, Paulo Mauro, Tony Richards and Alejandro Werner for their comments. Erwin Hansen provided excellent research assistance.


Massachusetts Institute of Technology and National Bureau of Economic Research [*]

Inter-American Development Bank [**]

Economic Research Department, Reserve Bank of Australia [***]