Do external imbalances increase the risk of financial crises? In this paper, we study the experience of 14 developed …

behind this crisis is the large demand for riskless assets from the rest of the world. In this paper we present a model to … downturn by concentrating risk onto its balance sheet. In addition to highlighting the role of capital flows in facilitating … concern with capital flows is in their speculative nature, in the U.S. the risk in capital inflows derives from the opposite …

The world has a shortage of financial assets. Asset supply is having a hard time keeping up with the global demand for … and deflationary episodes in parts of the world, all fall into place once one adopts this asset shortage perspective …

the world and, b) heterogeneity in these regions' capacity to generate financial assets from real investments. In …

This paper explores the consequences of extremely low equilibrium real interest rates in a world with integrated but …) While more price and wage flexibility exacerbates the risk of a deflationary global liquidity trap, it is the more rigid …