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Aoki, Kosuke; Benigno, Gianluca; Kiyotaki, Nobuhiro - Centre for Economic Performance, LSE - 2009

After liberalizing international transactions of financial assets, many countries experience large swings in asset prices, capital flows, and aggregate production. This paper studies how the adjustment to capital account liberalization depends upon the degree of development of a domestic...

Persistent link: https://www.econbiz.de/10005256484

House Price Booms and the Current Account

Adam, Klaus; Kuang, Pei; Marcet, Albert - Centre for Economic Performance, LSE - 2011

A simple open economy asset pricing model can account for the house price and current account dynamics in the G7 over the years 2001-2008. The model features rational households, but assumes that households entertain subjective beliefs about price behavior and update these using Bayes' rule. The...

Persistent link: https://www.econbiz.de/10009220235

Reserve Accumulation, Growth and Financial Crises

Benigno, Gianluca; Fornaro, Luca - Centre for Economic Performance, LSE - 2012

We present a model that reproduces two salient facts characterizing the international monetary system: i) Faster growing countries are associated with lower net capital inflows and ii) Countries that grow faster accumulate more international reserves and receive more net private inflows. We...

Persistent link: https://www.econbiz.de/10010567972

Challenges for the dollar as a reserve currency

Benigno, Gianluca - Centre for Economic Performance, LSE - 2011

Gianluca Benigno examines the extent to which the financial crisis has undermined the dollar's pre-eminence.

Persistent link: https://www.econbiz.de/10009147097

The Financial Resource Curse

Benigno, Gianluca; Fornaro, Luca - Centre for Economic Performance, LSE - 2013

with weak productivity growth. We study a two-sector, tradable and non-tradable, small open economy. The tradable sector is … the engine of growth, and productivity growth is increasing in the amount of labor employed by firms in the tradable … stagnant productivity growth. We show that capital controls can be welfare-enhancing and can be used as a second best policy …

Persistent link: https://www.econbiz.de/10010655944

Large Capital Inflows, Sectoral Allocation and Economic Performance

Benigno, Gianluca; Converse, Nathan; Fornaro, Luca - Centre for Economic Performance, LSE - 2015

This paper describes the stylized facts characterizing periods of exceptionally large capital inflows in a sample of 70 middle- and high-income countries over the last 35 years. We identify 155 episodes of large capital inflows and find that these events are typically accompanied by an economic...

Persistent link: https://www.econbiz.de/10011271361

On the International Dimension of Fiscal Policy

Benigno, Gianluca; Paoli, Bianca De - Centre for Economic Performance, LSE - 2009

This paper analyses the international dimension of fiscal policy using a small open economy framework in which the government finances its spending by levying distortionary taxation and issuing non-state-contingent debt. The main finding of the paper is that, once the open economy aspect of the...

Persistent link: https://www.econbiz.de/10005797240

Leveraging Monopoly Power by Degrading Interoperability: Theory and Evidence from Computer Markets

Genakos, Christos; Kühn, Kai Uwe; Reenen, John Van - Centre for Economic Performance, LSE - 2011

When will a monopolist have incentives to foreclose a complementary market by degrading compatibility/interoperability of his products with those of rivals? We develop a framework where leveraging extracts more rents from the monopoly market by "restoring" second degree price discrimination. In...

Persistent link: https://www.econbiz.de/10009150055

Financial Globalization and Exchange Rates

Lane, Philip R.; Milesi-Feretti, G - Centre for Economic Performance, LSE - 2004

The founders of the Bretton Woods System sixty years ago were primarily concerned with orderly exchange rateadjustment in a world economy that was characterized by widespread restrictions on international capitalmobility. In contrast, the rapid pace of financial globalization during recent years...

Persistent link: https://www.econbiz.de/10005510409

Do Workers' Remittances Reduce the Probability of Current Account Reversals?

Bugamelli, Matteo; Paternò, Francesco - Centre for Economic Performance, LSE - 2006

The paper combines the literature on financial crises in emerging markets and developing economies with that on international migrations by investigating whether the increasingly large flows of workers' remittances can help reduce the probability of current account reversals. The rationale for...

Persistent link: https://www.econbiz.de/10005151047