The transformation of American banking from the parochialism of 1960to the internationally linked structure of the 1980s is analyzed anddetailed quantitatively. While the liberalization of trade and theexistence of and changes in financial regulations profoundly affected thepace and order of...

Why in many economies households and firms borrow and make deposits in foreign currency? Expanding on the existing literature, our framework addresses this question allowing for interest rate differentials and access to foreign funds to play a role in explaining this process of asset...