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The first wave of globalization (1830-1914) witnessed a decline in the number of countries from 125 to 54. Political consolidation was often achieved through war and conquest. The second wave of globalization (1950-present) has led instead to an increase in the number of countries to a record...
Persistent link: https://www.econbiz.de/10012456628
character of foreign direct investment by American multinational firms. Indirect tax burdens significantly exceed foreign income … to be partly attributable to the inability of American investors to claim foreign tax credits for indirect tax payments …. Estimates imply that 10 percent higher indirect tax rates are associated with 9.2 percent lower reported income of American …
Persistent link: https://www.econbiz.de/10012470279
Global risk-off shocks can be highly destabilizing for financial markets and, absent an adequate policy response, may trigger severe recessions. Policy responses were more complex for developed economies with very low interest rates after the Global Financial Crisis (GFC). We document, however,...
Persistent link: https://www.econbiz.de/10012479979
I show that monetary policy divergence vis-a-vis the U.S. has larger spillover effects in emerging markets than advanced economies. The monetary policy of the U.S. affects domestic credit costs in other countries through its effect on global investors' risk perceptions. Capital flows in and out...
Persistent link: https://www.econbiz.de/10012480242
the rest of the world rather than focusing on issues with U.S. monetary and fiscal policies. In addition, at the urging of …
Persistent link: https://www.econbiz.de/10012481056
We characterize how U.S. global systemically important banks (GSIBs) supply short-term dollar liquidity in repo and foreign exchange swap markets in the post-Global Financial Crisis regulatory environment and serve as the "lenders-of-second-to-last-resort". Using daily supervisory bank balance...
Persistent link: https://www.econbiz.de/10012481346
This paper studies the synchronization of financial cycles across 17 advanced economies over the past 150 years. The comovement in credit, house prices, and equity prices has reached historical highs in the past three decades. The sharp increase in the comovement of global equity markets is...
Persistent link: https://www.econbiz.de/10012453043
We quantify the impact on U.S. employment from imports and exports during 1995-2011, using the World Input … total job losses of 2.0 million. It follows that the expansion in U.S. merchandise exports to the world relative to imports …
Persistent link: https://www.econbiz.de/10012453691
American multinational firms respond to politically risky environments by adjusting their capital structures abroad and … affiliates of the same parent companies. American firms further limit their equity exposures in politically risky countries by …
Persistent link: https://www.econbiz.de/10012466392
We estimate the impact of coups and top-secret coup authorizations on asset prices of partially nationalized multinational companies that stood to benefit from US-backed coups. Stock returns of highly exposed firms reacted to coup authorizations classified as top-secret. The average cumulative...
Persistent link: https://www.econbiz.de/10012461705