What Drives China's Current Account?
What drives China's current account? Primarily, expected real appreciation - i.e. expected rising prices of non-tradables such as housing, education and social services - and, to a …
mathias-hoffmann
What drives China's current account? Primarily, expected real appreciation - i.e. expected rising prices of non-tradables such as housing, education and social services - and, to a …
Securitization of mortgage debt is a good idea in principle because it makes risks internationally tradable that were hitherto local and non-diversifiable: housing. We show that …
Is financial globalization associated with improved international consumption risk sharing? We argue that, theoretically, the impact of financial globalization should show up first …
An interpretative survey with four answers: (i) consumption risk sharing seems to have increased among industrialized countries but much less in the emerging world; (ii) the …
Consumption risk sharing among U.S. federal states is procyclical - it increases in U.S.-wide booms and decreases in U.S.-wide recessions. These business-cycle fluctuations in …
Simple asset pricing implies that differences in currency risk premia (aka persistent deviations from uncovered interest parity) across countries reflect differential exposures of …
Would wider equity ownership help improve inter-regional consumption risk sharing between households? We use data from the Italian Survey of Household Income and Wealth to show …
Although the real exchange rate–real interest rate (RERI) relationship is central to most open economy macroeconomic models, empirical support for the relationship is generally …
The bulk of evidence on the lack of international risk sharing is based on regressions of idiosyncratic consumption growth on idiosyncratic output growth. This paper argues that …
In spite of two decades of financial globalization, consumption‐based indicators do not seem to signal more international risk sharing. We argue that the fraction of idiosyncratic …