Search Results

Showing results 1 to 1 of approximately 1.

(refine search)
SORT BY: PREVIOUS / NEXT
Keywords:Global Financial Cycle 

Working Paper
A Theory of the Global Financial Cycle

We develop a theory to account for changes in prices of risky and safe assets and gross and net capital flows over the global financial cycle (GFC). The multi-country model features global risk-aversion shocks and heterogeneity of investors both within and across countries. Within-country heterogeneity is needed to account for the drop in gross capital flows during a negative GFC shock (higher global risk-aversion). Cross-country heterogeneity is needed to account for the differential vulnerability of countries to a negative GFC shock. The key vulnerability is associated with leverage. In ...
Globalization Institute Working Papers , Paper 410

FILTER BY Bank

FILTER BY Content Type

FILTER BY Author

FILTER BY Jel Classification

F30 1 items

F40 1 items

FILTER BY Keywords

PREVIOUS / NEXT