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U.S. equity outperformance and sustained dollar appreciation have led to large valuation gains for the rest of the world on the U.S. external position. The author constructs their global distribution, carefully accounting for the role of tax havens. Valuation gains are concentrated and large in...
Persistent link: https://www.econbiz.de/10014500929
than in the past, partly because of a greater share of foreign direct investment and reduced reliance on foreign financing … that has contributed to improvements in international investment positions (IIPs). Participants held the view that the …
Persistent link: https://www.econbiz.de/10014212895
and types of investment. Moreover capital controls tend to reduce the probability of extreme episodes. With regard to …
Persistent link: https://www.econbiz.de/10012865665
business cycle variables (output, investment, and real interest rate) in 22 industrial and emerging countries. Total inward … output and investment in most industrial and emerging countries. Disaggregated inward flows positively comove with output in … industrial countries and with investment and the real interest rate in the G7 economies. Inward foreign direct investment is the …
Persistent link: https://www.econbiz.de/10012712571
reforms aimed at improving credibility of macroeconomic policy and establishing an investment-friendly environment. These … reforms will not only attract foreign capital but also encourage domestic investment. An important aspect of capital movements … macroeconomic conditions to ameliorate incentives for domestic investment, but also reform of the political and legal systems to …
Persistent link: https://www.econbiz.de/10014089321
This paper highlights a recent ‘great moderation' in global capital flows, characterized by smaller volumes and lower volatility of cross-border transactions. However, there are substantial differences across countries and regions which we analyse by comparing the level of international...
Persistent link: https://www.econbiz.de/10012983089
This paper assesses the effect of tight monetary policy on economic performance under different levels of capital flows. Empirical evidence from Turkey between 1990 and 2013 suggests that tight monetary policy measured with a positive innovation on interest rate appreciates the Turkish Lira (TL)...
Persistent link: https://www.econbiz.de/10013049177
This paper explores the role of international reserves as a stabilizer of international capital flows, in particular during periods of global financial stress. In contrast with previous contributions, aimed at explaining net capital flows, we focus on the behavior of gross capital flows. We...
Persistent link: https://www.econbiz.de/10013049868
The scarcity of up-to-date data is a meaningful constraint in the analysis of capital flows, especially for Emerging Markets (EMs). Indeed, the most commonly used source of cross-country data on capital flows is the Balance of Payments (BoP) statistics collected by the International Monetary...
Persistent link: https://www.econbiz.de/10013050653
Historical experience shows that in the world of high capital mobility, sudden stops of capital inflows may occur, typically triggering financial crises. The latest financial crisis in the euro zone (EZ) seems to support this point of view. Euro adoption encouraged a capital flow bonanza from...
Persistent link: https://www.econbiz.de/10013051896