the U.S. would experience a sudden stop of capital flows, which would unavoidably drag the world economy into a deep … instead that the root imbalance was of a different kind: The entire world had an insatiable demand for safe debt instruments … of exposing the economy to a systemic panic. This structural problem can be alleviated if governments around the world …

the world than many developing countries. A noteworthy feature of this theory is that financial and property rights …

In this paper we: (i) provide a model of the endogenous risk intolerance and severe aggregate demand contractions … addressing these contractions. The key mechanism stems from heterogeneous risk tolerance: as a recessionary shock hits the … economy and brings down asset prices, risk-tolerant agents' wealth share declines and their leverage rises endogenously. This …

seems that the world has much to celebrate, as most emerging market economies -- often suspect of having weak political …: Economic risk is high relative to political risk, markets are sufficiently incomplete, and there exists a rent-less policy …

Disparity between control and ownership rights gives rise to the risk of tunneling by the controlling shareholder, and …