Kumhof, Michael; Phurichai Rungcharoenkitkul; Sokol, Andrej - 2021 - This is an updated version of the Staff Working Paper originally published on 21 August 2020
Understanding gross capital flows is increasingly viewed as crucial for both macroeconomic and financial stability policies, but theory is lagging behind many key policy debates. We fill this gap by developing a two-country DSGE model that tracks domestic and cross-border gross positions between...
