The U.S. could be the source of the global financial risk because it longs risky assets and shorts safe assets in the … international capital market. This paper builds a stylized two-country model to highlight that when the developed country's risk …-bearing capacity improves, it holds more foreign risky assets and issue more risk-free debt. The foreign country's risk …

economy in the last decade and to measure the influence of the world economic crisis of 2009 on their external trade sector … regions of the world economy for the international trading transactions of CEE countries. The exercise revealed that CEE … ratio as a result of the world economic turbulences starting in 2009. Whereas the transition in the current account balance …

of competitiveness on cross-border capital flows, and shows how stages of economic development and country-specific risk … of its impact varies over different stages of development and across country risk levels …

real effects resulting from a more efficient resource allocation predicted by theory. We find that: (a) financial … systemic real risk realizations; (c) financial integration fosters domestic financial development and the liquidity of equity … in the form of improved countries' growth prospects and lower systemic real risk …