liability side, allowing investors sell domestic and foreign bonds and capturing changes in counterparty risk in a stylized way … the source of debt which is most sensitive to shocks is foreign funding. In fact, any shock creates a wedge between the … prices are mainly affected by financiers' concern for counterparty risk: impact effects are deep and in line with the terms …

consumption risk sharing depending on the nature of the underlying shock. …Perfect consumption risk sharing requires both, frictionless goods as well as frictionless financial market integration …. This project aims at analyzing the consequences of both type of frictions for the allocation of risk across countries in a …

imbalances amplifies external risks, especially during periods of heightened global risk aversion. The results are especially …

stance and global risk aversion. Based on the sensitivities, we draw heat maps to indicate the economies that are more likely … and global risk aversion since the global financial crisis, possibly attributable to an increasing participation of global … about the risk of large inflows …