Financial liberalization, low world interest rates and global imbalances: a note with a simple two-country model

We can understand the role of the liberalization of capital outflows on the global imbalances, the increasing share of US equities in foreign investors' portfolio and the decline in the world interest rate and the S&P dividend-price ratio, facts observed during the last three decades, when taxes on international asset holdings are reduced in a simple two-country model with costs of portfolio adjustment.

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Year of publication:	2014
Authors:	Duncan, Roberto
Published in:	Applied Economics Letters. - Taylor & Francis Journals, ISSN 1350-4851. - Vol. 21.2014, 14, p. 1025-1029
Publisher:	Taylor & Francis Journals

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

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