A workhorse two-country portfolio model that embeds net foreign asset (NFA) imbalances rationalizes the following observation: debtor countries have on average a less diversified international portfolio than creditor countries. Abstracting from NFA imbalances, the model would feature a...

We introduce shocks to the availability of US dollar funding for non-US financial intermediaries in a two-country New Keynesian model with financial frictions. Such dollar shortages lead to uncovered interest rate parity deviations and have a significant negative effects on the macroeconomy....

Decentralized Finance (DEFI) is changing the financial landscape. What are the consequences on market infrastructures, financial actors, the transmission of monetary policy? Does the concept of "Commons" introduced by Elinor Ostrom, winner of the 2009 Nobel Prize in Economics, offer a relevant...

Das Energieseminar ist eine unabhängige Wissensplattform für Energieversorger, Industriebetriebe, Gewerbe-, Handel- und Dienstleistungsunternehmen sowie Entscheidungsträgern aus Kommunen, Verwaltungen und öffentlichen Einrichtungen. Frei von kommerziellen Interessen trägt das...

We provide evidence for a causal link between the US economy and the global financial cycle. Using a unique intraday dataset, we show that US macroeconomic news releases have large and significant effects on global risky asset prices. Stock price indexes of 27 countries, the VIX, and commodity...

Topics include the main areas of modern finance, such as corporate finance, asset pricing, derivatives, market microstructure, international finance and financial intermediation.

Official Development Assistance (ODA) and other state-financed development projects are promoted as means to reduce the migratory flows from developing countries. We test whether international development projects affect migration aspirations, plans, and the onset of concrete migration...

Most but not all economists view carbon pricing as most effective to combat carbon emissions, whereas other policies are widely applied and highly debated. The paper presented in this ZEW QUEST Seminar quantifies the effectiveness of climate policies in the form of pricing carbon and subsidizing...

This paper sheds light on the effectiveness of policies addressing high non-performing loans (NPLs). Using data on ownership of subsidiaries of foreign banks in Emerging Europe, we first show that changes in NPLs of parent banks are associated with changes in NPLs of their foreign affiliates,...