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We provide an overview of the recent developments of the literature on the determinants of long term capital flows, global imbalances and valuation effects. We present the main stylized facts of the new international financial landscape in which external balance sheets of countries have grown in...
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technology of private investment. Government policies that discourage saving might make the Schumpeterian vision of a shift from …
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investment rates observed in OECD countries. We find that once controlling for general equilibrium effects the saving …
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features of the world at present are the low rates of investment and growth in some of the richest countries, whose surpluses … account for about half of the US deficit. The result is that financial capital is flowing out of countries with low investment …
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