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Emerging from the war : gold standard mentality, current accounts and the international business cycle 1885 - 1939

Hoffmann, Mathias; Woitek, Ulrich - 2011 - This version: December 2011

We study international business cycles and capital flows in the UK, the United States and the Emerging Periphery in the period 1885-1939. Based on the same set of parameters, our model explains current account dynamics under both the Classical Gold Standard and during the Interwar period. We...

Persistent link: https://www.econbiz.de/10009741030

Theory-based measurement of the saving-investment correlation with an application to Norway

Jansen, Willem Jos; Schulze, Günther G. - 1993

We demonstrate that the correlation of saving and investment is measured best by an error correction model (ECM), because theory implies a cointegrating relation between these variables. The ECM comprises all previous specifications as special cases, which are shown to be potentially...

Persistent link: https://www.econbiz.de/10010220230

International Capital Flows : Private Versus Public Flows in Developing and Developed Countries

Kim, Yung Jun; Zhang, Jing - 2021

rationalize these patterns using a dynamic stochastic two-sector model of a small open economy facing borrowing constraints … reduce aggregate debt, making the economy resilient to adverse shocks. Differences in borrowing constraints and shock …

Persistent link: https://www.econbiz.de/10013314997

The Feldstein-Horioka Fact

Giannone, Domenico; Lenza, Michele - 2021

This paper shows that general equilibrium effects can partly rationalize the high correlation between saving and investment rates observed in OECD countries. We find that once controlling for general equilibrium effects the saving-retention coefficient remains high in the 70's but decreases...

Persistent link: https://www.econbiz.de/10013316585

On the Determinants of External Imbalances and Net International Portfolio Flows : A Global Perspective

De Santis, Roberto A.; Lührmann, Melanie - 2021

In a panel covering a large number of countries from 1970 to 2003, we show that net portfolio flows play an important role in correcting external imbalances, since they are driven by common determinants represented by countries' demographic profiles, the quality of institutions, monetary...

Persistent link: https://www.econbiz.de/10013317564

Capital Controls and Trade Liberalization in a Monetary Economy

Jang, Byung Kyoon - 2021

This paper reexamines Aizenman`s (1985) results on the effects of capital controls during unanticipated trade liberalization using an intertemporal optimizing monetary model. Unlike in Aizenman`s model, which is based on the currency substitution model, foreign money is an interest-bearing asset...

Persistent link: https://www.econbiz.de/10013317728

Large Capital Flows : A Survey of the Causes, Consequences, and Policy Responses

López-Mejía, Alejandro - 2021

This paper reviews the causes, consequences, and policy responses to large capital flows in several emerging markets. It opens by studying recent patterns of capital flows, and then discusses the causes of capital flows. Emphasis is given to the reasons behind the capital inflow episode in the...

Persistent link: https://www.econbiz.de/10013317732

The Effects of Capital Controls on Exchange Rate Volatility and Output

Frenkel, Michael; Stadtmann, Georg; Schmidt, Gunter; … - 2021

This paper extends the Dornbusch model of overshooting exchange rates to discuss both exchange rate and output effects of capital controls that involve additional costs for international asset transactions. We show that, on the one hand, such capital controls have the merit of reducing the...

Persistent link: https://www.econbiz.de/10013317786

Capital Flows and the Us 'New Economy' : Consumption Smoothing and Risk Exposure

Miller, Marcus H.; Castren, Olli; Zhang, Lei - 2021

In an analytically tractable model of the global economy, we calculate the Pareto improvement where a country …. With capital inflows to finance the 'New Economy' significantly exceeding the current account deficit, however, we show … which appeal to financial factors to explain why the European economy was so strongly affected by the recent US downturn …

Persistent link: https://www.econbiz.de/10013318678

Growth Expectations, Capital Flows and International Risk Sharing

Castren, Olli; Stiegert, Roger; Miller, Marcus H. - 2021

to shocks. We use a stylised two-bloc, two-period model of the global economy, with a simple stochastic productivity …

Persistent link: https://www.econbiz.de/10013319734