This paper analyzes the behavior of international capital flows by foreign and domestic
agents, dubbed gross capital flows, over the business cycle and during financial crises. We …

This paper surveys the literature on the linkages between asset prices and macroeconomic
outcomes. It focuses on three major questions. First, what are the basic theoretical linkages …

We analyze the impact of financial globalization on business cycle synchronization using a
proprietary database on banks' international exposure for industrialized countries during …

Abstract The Great Financial Crisis of 2007-09 confirmed the vital importance of advancing
our understanding of macrofinancial linkages, the two-way interactions between the real …

We provide a theoretical framework to uncover in a model‐free way the relationships among
international stochastic discount factors (SDFs), stochastic wedges, and financial market …

We develop a novel measure of volatility pass-through to assess international propagation
of output volatility shocks to macroeconomic aggregates, equity prices, and currencies. An …

The slope carry takes a long (short) position in the long-term bonds of countries with steeper
(flatter) yield curves. The traditional carry takes a long (short) position in countries with high …

Principles of International Finance and Open Economy Macroeconomics: Theories,
Applications, and Policies presents a macroeconomic framework for understanding and …

In his terrific book, Crashed, Adam Tooze (2018a) narrates the shock of the 2007-8 financial
crisis for policymakers on both sides of the Atlantic Ocean. He shows how a faulty policy …

The previous and latest crises confirmed that stability of external financing of the economy is
determined not only by the volume of capital inflow but also by its structure. It is established …