We survey the literature on global capital allocation. We begin by reviewing the rise of cross-
border investment, the shift toward portfolio investment, and the literature focusing on …

Poor financial health of intermediaries coincides with low asset prices and high risk
premiums. Is this because intermediaries matter for asset prices, or because their health …

This paper studies the impact of investor composition on the sovereign debt market. We
construct a data set of sovereign debt holdings by foreign and domestic bank, non-bank …

A review of recent advances in open economy analysis under segmented international
financial markets. A set of modeling tools that have been used to understand financial crises …

This paper explores the role of restrictions on the use of international reserves as economic
sanctions. We develop a simple model of the strategic game between a sanctioning …

We assess the pattern of Euro Area financial integration adjusting for the role of “onshore
offshore financial centers”(OOFCs) within the Euro Area. The OOFCs of Luxembourg …

We document that governments whose local currency debt provides them with greater
hedging benefits actually borrow more in foreign currency. We introduce two features into a …

Foreign investors' changing appetite for risk-taking have been shown to be a key
determinant of the global financial cycle. Such fluctuations in risk sentiment also correlate …

We document significant and persistent price dislocations in secured and unsecured
wholesale dollar funding markets between US money market funds (MMFs) and highly-rated …

Using a two-country model, this paper shows that the shift from foreign currency to local
currency external borrowing does not eliminate the vulnerability of EMs to foreign financial …