The study examines the degree of current account deficit (CAD) sustainability and capital mobility for a panel of 97 countries over the period 1980-2020. To this end, the study adopts a novel interpretation of the Feldstein-Horioka coefficient in the context of CAD sustainability and examines...

We propose a macroprudential theory of foreign reserve accumulation that can rationalize the secular trends in public and private international capital flows. In middle-income countries, the increase in international reserves has been associated with elevated private capital inflows, both in the...

Non-US global banks are an important driver of the international synchronization of house price growth. A loosening (tightening) of US dollar funding conditions leads non-US global banks to expand (contract) their international lending, which is largely denominated in US dollars. This induces a...

We examine how central bank foreign exchange (FX) operations affect nominal exchange rates by exploiting two large operations by Sveriges Riksbank: foreign currency purchases during 2021-2022 and domestic Swedish krona (SEK) purchases-that is, FX forward sales- during 2023-2024. Using daily data...

The complex nature of international capital flows remains a central topic in academic debate. Despite extensive research, the relationship between capital inflows and financial system vulnerabilities remains complex and influenced by both global, regional and domestic factors that necessitate...

Using a newly constructed dataset, this paper investigates the determinants of cross-regional venture capital (VC) flows within Europe through a structural gravity model. Using Poisson Pseudo Maximum Likelihood (PPML) estimations with high-dimensional fixed effects, we analyse how traditional...

Chinese private portfolio equity outflows, though small compared to other Chinese outflows, are growing rapidly because of capital account liberalization and capital flight. Using granular stock-holding data on Qualified Domestic Institutional Investor (QDII) mutual funds, we identify a nascent...