Capelle, Damien; Pellegrino, Bruno - 2025 - This version: August 2025
implications of the last five decades of financial globalization. We introduce a wedge accounting framework to estimate country … countries have become relatively more open to capital outflows, a phenomenon we call "Unbalanced Financial Globalization …." Counterfactual simulations show that this unbalanced financial globalization has worsened capital allocation, resulting in a 5 …