Akinci, Ozge; Kalemli-Ozcan, Sebnem; Queralto, Albert - National Bureau of Economic Research - 2022
Foreign investors' changing appetite for risk-taking have been shown to be a key determinant of the global financial … frictions, and who act as global intermediaries in that they take on foreign asset risk. In this setup, an exogenous increase in … premia and lower global asset values. Moreover, when U.S. uncertainty rises, the exchange rate in the foreign country vis …