This paper explores the relationship between equity prices and the current account for 17 industrialized countries in the period 1980 - 2007. Based on a panel vector autoregression, I compare the effects of equity price shocks to those originating from monetary policy and exchange rates. While...

The recent boom-bust cycles of asset prices are characterized by massive in- and outflows of foreign speculative investments. To explain this phenomenon, we develop a two-country model of rational bubbles with asymmetric degrees of financial development. We show that financial globalization has...

This paper explores the relation between stock prices and the current account for 17 OECD countries in 1980-2007. I use a panel vector autoregression (VAR) to compare the effects of stock price shocks to those originating from monetary policy and exchange rates. While monetary policy shocks have...

Globalization and financial sector reforms in India have ushered a vibrant change in Indian economic system. Current growth of India puts it's among the largest and fastest growing economy of the world. Following the liberalization, Asian economy is becoming the hub of world economy. Sixty...

We use segmented dual-class shares of Chinese firms, A shares traded in mainland China by local investors under binding capital controls and H shares traded in Hong Kong by foreign investors, to study cross sectional stock market reactions to the COVID-19 lockdown policy in China. We find...

The withdrawal of foreign capital from emerging countries at the height of the recent financial crisis and its quick return sparked a debate about the impact of capital flow surges on asset markets. This paper addresses the response of property prices to an inflow of foreign capital. For that...

Following Chairman Ben Bernanke’s comments before Congress that the FOMC may ‘take a step down in the pace of asset purchases if economic improvement appears to be sustained’, US 10-year interest rates picked up sharply and gross capital flows to emerging market economies (EMEs) reversed....

The withdrawal of foreign capital from emerging countries at the height of the recent financial crisis and its quick return sparked a debate about the impact of capital flow surges on asset markets. This paper addresses the response of property prices to an inflow of foreign capital. For that...

The withdrawal of foreign capital from emerging countries at the height of the recent financial crisis and its quick return sparked a debate about the impact of capital flow surges on asset markets. This paper addresses the response of property prices to an inflow of foreign capital. For that...

The withdrawal of foreign capital from emerging countries at the height of the recent financial crisis and its quick return sparked a debate about the impact of capital flow surges on asset markets. This paper addresses the response of property prices to an inflow of foreign capital. For that...