Why are foreigners willing to invest almost $2 trillion per year in the United States? The answer affects if the existing pattern of global imbalances can persist and if the United States can continue to finance its current account deficit without a major change in asset prices and returns. This...

We use changes in Brazil's tax on capital inflows from 2006 to 2011 to test for direct portfolio effects and externalities from capital controls on investor portfolios. The analysis is structured based on information from investor interviews. We find that an increase in Brazil's tax on foreign...

This paper documents four trends in Asia: (1) the increase in the magnitude of gross capital inflows and outflows; (2) the larger magnitude of gross capital inflows relative to outflows in some countries; (3) the increase in the volatility of these capital flows; and (4) the steady increase in...

Are capital controls and macroprudential measures successful in achieving their objectives? Assessing their effectiveness is complicated by selection bias and endogeneity; countries which change their capital-flow management measures (CFMs) often share specific characteristics and are responding...

This paper uses a “trendy” approach to understand UK inflation dynamics. It focuses on the time series to isolate a low‐frequency and slow moving component of inflation (the trend) from deviations around this trend. We find that this slow‐moving trend explains a substantial share of UK...