Our study shows that China could contribute to an orderly global rebalancing by a package of policies to stimulate its domestic consumption. These policies include a progressive appreciation of RMB, fiscal stimuli of increasing social expenditures on education, healthcare, social safety net and...

Using a broad range of uncertainty measures, we show that uncertainty dramatically slows down firms' adjustments toward their optimal capital structure. At the upper bound, the estimated speed of leverage adjustments almost halves when uncertainty is high. High quality institutions (common law...