The covered interest rate parity (CIP) condition is a fundamental arbitrage relationship in
international finance. In this chapter, we review its breakdown during the Global Financial …

We show that the likelihood of a liquidity crunch in wholesale US dollar funding markets
depends on levels of reserve balances at the financial institutions that are the most active …

We analyze a large number of industry-and company-level filings of global institutional
investors to provide the first comprehensive estimate of foreign investors' US dollar (USD) …

We analyze the run risk of USD-backed stablecoins. Stablecoin issuers aim to keep the
stablecoin price at $1 by holding a portfolio of US dollar assets like bank deposits …

Off-balance sheet foreign exchange (FX) swaps are a major source of US dollar funding for
non-US banks that provide over half of global dollar credit. However, the frictions that lead …

We study the implications of deviations from covered interest rate parity for international
capital flows using novel data covering euro-area derivatives and securities holdings …

We devise a simple model of liquidity demand and supply to deepen the understanding of
dealers' liquidity provision in currency markets. Drawing on a globally representative data …

How can we assess whether macro-prudential regulations are having their intended effects?
If these regulations are optimal, their marginal benefit of addressing externalities should …

We argue that speculative forces drive currency forward demand and shape covered interest
parity (CIP) deviations in emerging economies. We propose a model in which global …

We study the effects of frictions in FX derivatives markets on international capital flows using
a novel dataset that covers the universe of euro area derivatives and securities holdings. In …