the past decades due to the increased world financial integration. In addition, there is a negative correlation between …

the rest of the world cannot explain the U.S. current account deficits, especially in the 1980s and the 2000s. This is … because on a GDP- weighted basis, the rest of the world actually had higher productivity growth during these periods, and … standard macroeconomic models would predict an outflow of funds from the U.S. to the rest of the world, and a consequent U …

in equity and debt markets. Such developments are often attributed to the increased integration of world financial … markets. We present a model that allows us to examine how greater integration in world financial markets affects the behavior … concentrated in bonds. As integration progresses and households gain access to world equity markets, the size and volatility of …

The US economy is often referred to as the “banker to the world,” due to its unique role in supplying global reserve …