The importance of financial markets and international capital flows have increased greatly since the 1990s. How does …

The standard argument for abstracting from capital accumulation in sticky-price macro models is based on their short …-run focus: over this horizon, capital does not move much. This argument is more problematic in the context of real exchange rate … (RER) dynamics, which are very persistent. In this paper we study RER dynamics in sticky-price models with capital …

private/public-sector guarantors of institutions, expect an appropriate risk-adjusted return in exchange for the financing and … risk-bearing that they provide. Customers of a financial intermediary, in contrast, provide financing in exchange for a …

exposures to NBFI and dollar funding, with less priority for regulations focused on residency (i.e., capital controls). After …

segmentation is partly overcome by global arbitrageurs with limited capital. Our model accounts for the empirically documented …