Foreign investors' changing appetite for risk-taking have been shown to be a key determinant of the global financial … cycle. Such fluctuations in risk sentiment also correlate with the dynamics of UIP premia, capital flows, and exchange rates …. To understand how these risk sentiment changes transmit across borders, we propose a two-country macroeconomic framework …

We study the effects of debt-financed fiscal transfers in a general equilibrium, heterogeneous-agent model of the world … economy. In the long run, increases in government debt anywhere raise the world interest rate and increase private wealth … are consistent with the evolution of the world's balance of payments since the beginning of the Covid pandemic …

-border lending by global banks. Evidence suggests that investment fund flows enhance risk-sharing across borders and provide emerging … particularly sensitive to global risk shocks such as tightening US dollar funding conditions relative to their active fund …

Global risk and risk aversion shocks have distinct distributional impacts on emerging market capital flows and returns …. In particular, we find salient consequences of these different global shocks for tail risk in emerging markets. Open …

We present a dynamic two-country model in which military spending, geopolitical risk, and government bond prices are …

Recent trends suggest the world economy may be tending towards an equilibrium with two distinct trading blocs, each … internally integrated, but with significant isolation between the blocs. This paper uses a quantitative theory to explore how far … this bifurcation would need to go to pose a threat to the special role of the dollar in international exchange. The theory …