This paper introduces a tractable capital market friction mechanism that allows a break of the parity between domestic … and external interest rates and generates a gradual evolution of capital stock and other macroeconomic variables …-sector, open economy model of capital accumulation, where the friction mechanism is combined with standard assumptions about …

positive impact on its capital inflows, namely portfolio and foreign direct investment (FDI). The purpose of our study is to … determinants of portfolio and FDI flows and use a non-parametric test for spatial correlation in the residual of capital flows …

A push-pull-brake model of capital flows is used to study the effects of fiscal policy changes on private capital flows … to emerging Europe during 2000-07. In the model, countercyclical fiscal policy has two opposing effects on capital … inflows: (i) a conventional absorption-reducing effect, as a tighter fiscal stance acts as a brake on capital flows; and (ii …

We demonstrate empirically that not all capital flows influence exchange rates equally: Capital flows induced by …, whereas capital flows induced by foreign investors' transactions in government bond markets do not. We relate these … differences in the price impact of capital flows to differences in the amounts of private information conveyed by these flows. Our …

This paper presents a new model for studying international capital flows and debt dynamics that emphasizes the role ….S. external position and capital flows between 1973 and 2008. The estimates show that most of the secular rise in U …

Net capital flows to emerging Asia rebounded at a record pace following the global financial crisis, raising concerns …

This paper studies the effects of government spending under limited international capital mobility, as featured by most …

Two striking facts about international capital flows in emerging economies motivate this paper: (1) Governments hold …

weakness is that they omit potential risks embedded in the banking groups™ geographical structures by assuming that capital and … across countries (e.g., minimum capital requirements), and, more importantly, that home/host regulators might limit flows of … capital or liquidity within a group during periods of stress. This study presents a framework on how to integrate this risk …