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We develop a new dynamic factor model that allows us to jointly characterize global macroeconomic and financial cycles and the spillovers between them. The model decomposes macroeconomic cycles into the part driven by global and country-specific macro factors and the part driven by spillovers...
Persistent link: https://www.econbiz.de/10012479322
valuation gap for firms from developed markets increases by 31% after the GFC - a reversal in financial globalization - while …
Persistent link: https://www.econbiz.de/10012481979
Two observations suggest that financial globalization played an important role in the recent financial crisis. First …
Persistent link: https://www.econbiz.de/10012463217
The crises in Mexico, Thailand, and Russia in the 1990s spread quite rapidly to countries as far apart as South Africa and Pakistan. In the aftermath of these crises, many emerging economies lost access to international capital markets. Using data on international primary issuance, this paper...
Persistent link: https://www.econbiz.de/10012464398
The literature on the benefits and costs of financial globalization for developing countries has exploded in recent … perspective on the macroeconomic effects of financial globalization, both in terms of growth and volatility. Overall, our critical … benefit from financial globalization, but with many nuances. On the other hand, there is little systematic evidence to support …
Persistent link: https://www.econbiz.de/10012466181
We consider the operation of international capital markets in two periods of globalization, before 1914 and after 1971 … international monetary framework was responsible for the relatively short-lived and mild nature of pre-World War I financial crises …
Persistent link: https://www.econbiz.de/10012469999
We develop a theory to account for changes in prices of risky and safe assets and gross and net capital flows over the global financial cycle (GFC). The multi-country model features global risk-aversion shocks and heterogeneity of investors both within and across countries. Within-country...
Persistent link: https://www.econbiz.de/10012629437
context of globalization then ( pre-1914) and now ( 1980 to the present). I then discuss the determinants of emerging market …
Persistent link: https://www.econbiz.de/10012465663
We analyze the impact of financial globalization on asset prices, investment and the possibility of crashes driven by …
Persistent link: https://www.econbiz.de/10012469420
known as the most distinct characteristic of Asian EMEs. Financial globalization seems to have made asset prices and …
Persistent link: https://www.econbiz.de/10012456407