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Eventually, the production crew felt that the sheet effect was not effective, and so the footage was blurred in order to create a "molecular transferal" effect.
How can countries mitigate the fall in output resulting from the balance sheet effect in crises?
But because their revenues are also in foreign currency, the balance sheet effect would be quite limited for these firms.
There are various possible contractionary effects of devaluation, but it is appropriate that the balance sheet effect receives the most emphasis.
In any case, the evidence on contractionary devaluations is pretty mixed and, if anything, appears to suggest that the expenditure switching (i.e., cut import and increase export) dominates the balance sheet effect.
Argument #4: Monetary stimulus can lead to further depreciation of the hryvnya and, since many people and businesses borrowed in foreign currency, the balance sheet effect of such policies could backfire.
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Leverage, balance sheet effects, self-reinforcing financial collapse — the details are different, but there are some clear common themes.
Second, even if the currency depreciates, such depreciation will boost exports and thus offset any adverse balance sheet effects.
Contractionary effects of devaluation are also far more important for developing countries, particularly the balance sheet effects that arise from currency mismatch.
But even then it's far easier to just increase M. In any case, however, we are in a liquidity trap, and balance sheet effects are very important.
For each class of stress tests, we then construct in closed form probability distributions that capture the range of possible balance sheet effects both for each individual financial institution and for the entire financial system.
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Justyna Jupowicz-Kozak
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