This occasional paper was written by Hyun Song Shin (Princeton University).Over the last decade, the internal and external macroeconomic imbalances in China have risen to unprecedented levels. In 2008, China’s national savings rate soared to over 53 percent of GDP, whereas the current account...

This occasional paper was written by Hyun Song Shin (Princeton University).A widespread opinion before the credit crisis of 2007-8 was that securitization enhances financialstability by dispersing credit risk. After the credit crisis, securitization was blamed for allowing the“hot potato” of...

This working paper is written by Pasquale Della Corte (Imperial College London) and Aleksejs Krecetovs (Imperial College London).We empirically study the relationship between currency excess returns and current account uncertainty, measured as forecast dispersion. We find that investment...