collateral to back financial contracts. Financially integrated countries have access to the same set of financial instruments, and … yet there is no price convergence of assets with identical payoffs, due to a gap in collateral values. Home (financially … driven by collateral differences collapse following bad news about fundamentals. Our results can explain financial flows among …

model with collateral. This paper develops a general-equilibrium framework to explore QE's international transmission … involving an advanced economy (AE) and an emerging market economy (EM) whose assets have less collateral capacity. Capital flows … arise as a result of international sharing of scarce collateral. The crucial insight is that private AE agents adjust their …

robustly destroys competitive equilibrium. The need for collateral would seem to cause under-investment. Our analysis … illustrates a countervailing force: goods that serve as collateral yield additional services and are therefore over-valued and … over-produced. In models without cash flow problems there is never marginal under-investment on collateral …

model with collateral. This paper develops a general-equilibrium framework to explore QE's international transmission … involving an advanced economy (AE) and an emerging market economy (EM) whose assets have less collateral capacity. Capital flows … arise as a result of international sharing of scarce collateral. The crucial insight is that private AE agents adjust their …

collateral. We show why tranching and leverage tend to raise asset prices and why CDS tend to lower them. This may seem puzzling …, since it implies that creating a derivative tranche in the securitization whose payoffs are identical to the CDS will raise …

puzzling, since it implies that creating a derivative tranche in the securitization whose payoffs are identical to the CDS will …

We show that financial innovations that change the collateral capacity of assets in the economy can affect investment …

puzzling, since it implies that creating a derivative tranche in the securitization whose payoffs are identical to the CDS will …

robustly destroys competitive equilibrium. The need for collateral would seem to cause under-investment. Our analysis … illustrates a countervailing force: goods that serve as collateral yield additional services and are therefore over-valued and … over-produced. In models without cash flow problems there is never marginal under-investment on collateral. …