We adapt simple tools from computational linguistics to construct a new measure of political
risk faced by individual US firms: the share of their quarterly earnings conference calls that …

This article summarises the academic contributions presented and discussed during the
2016 edition of the Melbourne Institute Macroeconomic Policy Meetings, which focused on …

Using a panel of 45 major economies, we investigate the effects of geopolitical risk on the
dynamics of international capital flows. At aggregate level, capital flows for both advanced …

We provide a critical review of macroeconomic models used for monetary policy at central
banks from a finance perspective. We review the history of monetary policy modeling, survey …

We uncovered 5 novel facts on Uncovered Interest Parity (UIP) deviations for 22 emerging
markets (EM). The average UIP premium—or the excess currency return—is: 1) always …

We propose a text‐based method for measuring the cross‐border propagation of large
shocks at the firm level. We apply this method to estimate the expected costs, benefits, and …

We examine international equity allocations at the fund level and show how excess foreign
returns influence portfolio rebalancing, capital flows, and currencies. Our equilibrium model …

While foreign direct investment (FDI) is known to be the most stable type of international
capital flows, it may be particularly susceptible to heightened uncertainty because of its high …

Asian economies had faced high economic instability as compared to advanced economies
due to unstable exchange rates, financial dependence on advanced economies, and …

Consistent with the agency view of cash holdings, we document a strong negative
relationship between economic policy uncertainty and corporate cash holdings for non-US …