question whether the world has become smaller in terms of economic distance. Instead of focussing on the transmission of single … results for the most recent period suggest that a uniform shock to output volatility in the world economy roughly …

markets world-wide gained importance during the post-crisis "second phase of global liquidity" (Shin, 2013). The analysis … presented in this paper shows that a loosening of US monetary policy leads to higher global investment fund in ows to euro area … decade and have important policy implications for monetary and financial stability. …

policies, but theory is lagging behind many key policy debates. We fill this gap by developing a two-country DSGE model that … directions in response to shocks. This matters for at least four policy debates. First, current accounts are poor indicators of …