Ghironi, Fabio; Lee, Jaewoo; Rebucci, Alessandro - Department of Economics, Boston College - 2009
position through the "valuation channel" of external adjustment, namely capital gains and losses on the country's external … assets and liabilities. We examine this valuation channel theoretically in a dynamic equilibrium portfolio model with … international trade in equity that encompasses complete and incomplete asset market scenarios. By separating asset prices and …