the weight of U.S. liabilities in the rest of the world''s stock of external assets. Finally, it relates the empirical …

advantage. Financial globalization then induces more specialization and more trade. The present framework yields explicit closed …

We estimate world cycles using a new quarterly dataset of output, credit and asset prices assembled using IMF archives … and covering a large set of advanced and emerging economies since 1950. World cycles, both real and financial, exist and … time. Although this is true for prices (goods and assets), this not true for quantities (output and credit). The world …