This study analyses two hypotheses that ascribe the 2008 US financial crisis to capital inflows. The Asian savings glut hypothesis posits that net inflows into high-grade US public bonds from countries running current account surpluses led to the housing boom and bust. An excess of savings over...

This working paper examines what might loosely be termed a ‘twenty years crisis’ in the history of the transatlantic relationship since the turn of the new century. Like the death of Mark Twain the demise of the relationship has been announced many times before, but like Twain himself has...