large asset price spillovers of country-specific shocks to bank capital. The impact of these shocks on asset prices are … amplified by bank capital requirements based on mark-to-market …

Why did some countries learn to grow up to financial stability and others not? We explore this question by surveying … of long-run economic outcomes, financial development, financial stability, crisis frequency, and their policy responses … to crises. The countries that grew up to financial stability had rule of law, democracy, political stability and other …

simplistic models arguing for financial integration typically employed in economics assume convexity; but the world is rife with …

stability, all reflecting the introduction of the euro. In contrast, emerging market countries pursued exchange rate stability … monetary independence can dampen output volatility while greater exchange rate stability implies greater output volatility … inflation while greater exchange rate stability and greater financial openness could lower the inflation level; (iii) a policy …

were not possible, and has created much greater access to finance for firms and households. On net, this has made the world …

in equity and debt markets. Such developments are often attributed to the increased integration of world financial … markets. We present a model that allows us to examine how greater integration in world financial markets affects the behavior … concentrated in bonds. As integration progresses and households gain access to world equity markets, the size and volatility of …

Measuring the integration of world capital markets is notoriously difficult. For example, regulatory changes which … equity market becomes financially integrated with world capital markets. We find endogenous break dates that are very … markets are on average larger and more liquid than before; returns are more volatile and more highly correlated with the world …