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The International Financial Integration of China and India

Lane, Philip R.; Schmukler, Sergio - C.E.P.R. Discussion Papers - 2006

Three main features characterize the international financial integration of China and India. First, while only having a … “short equity, long debt.” Third, China and India have improved their net external positions over the last decade although …. Changes in these factors will affect the international financial integration of China and India (through shifts in capital …

Persistent link: https://www.econbiz.de/10005662395

Financial Stability, the Trilemma, and International Reserves

Obstfeld, Maurice; Shambaugh, Jay C; Taylor, Alan M. - C.E.P.R. Discussion Papers - 2008

The rapid growth of international reserves|a development concentrated in the emerging markets|remains a puzzle. In this paper we suggest that a model based on financial stability and financial openness goes far toward explaining reserve holdings in the modern era of globalized capital markets....

Persistent link: https://www.econbiz.de/10005661901

The Geography of Asset Trade and the Euro: Insiders and Outsiders

Coeurdacier, Nicolas; Martin, Philippe - C.E.P.R. Discussion Papers - 2007

This paper analyzes the determinants of cross-border asset trade on cross-country data and a Swedish data set. We focus our analysis on the effect of the euro for the determinants of bond trade, equity and banking assets. With the help of a theoretical model, we attempt to disentangle the...

Persistent link: https://www.econbiz.de/10005497990

Do Trade Costs in Goods Market Lead to Home Bias in Equities?

Coeurdacier, Nicolas - C.E.P.R. Discussion Papers - 2008

Two of the main puzzles in international economics are the consumption and the portfolio home biases. We solve for international equity portfolios in a two-country/two-good stochastic equilibrium model with trade costs in goods markets. We show that introducing trade costs, as suggested by...

Persistent link: https://www.econbiz.de/10005661811

International Good Market Segmentation and Financial Market Structure

Basak, Suleyman; Croitoru, Benjamin - C.E.P.R. Discussion Papers - 2003

While financial markets have recently become more complete and international capital flows well liberalized, markets for goods remain segmented. To investigate how more complete security markets may relieve the effects of this segmentation, we examine a series of two-country economies with...

Persistent link: https://www.econbiz.de/10005662013

Why Do Emerging Economies Borrow Short Term?

Broner, Fernando A; Lorenzoni, Guido; Schmukler, Sergio - C.E.P.R. Discussion Papers - 2007

We argue that emerging economies borrow short term due to the high risk premium charged by bondholders on long-term debt. First, we present a model where the debt maturity structure is the outcome of a risk sharing problem between the government and bondholders. By issuing long-term debt, the...

Persistent link: https://www.econbiz.de/10005789190

Trade Credit and International Return Comovement

Albuquerque, Rui; Ramadorai, Tarun; Watugala, Sumudu - C.E.P.R. Discussion Papers - 2011

We examine trade credit links between firms as a channel of international return comovement. We model firms in different countries connected by trade credit links in segmented stock markets with asymmetrically informed investors. The model predicts that the cross-serial correlation of country...

Persistent link: https://www.econbiz.de/10008854544

Exchange Rate And Foreign Inflation Risk Premiums In Global Equity Returns

Vassalou, Maria - C.E.P.R. Discussion Papers - 2000

We test for the pricing of exchange rate and foreign inflation risk in equities. Our tests are motivated by the empirical implications of the models of Solnik (1974b) as revised by Sercu (1980), Grauer, Litzenberger, and Stehle (1976), and Adler and Dumas (1983). Both exchange rate and foreign...

Persistent link: https://www.econbiz.de/10005504518

Exchange Rate Regimes and Capital Mobility: How Much of the Swoboda Thesis Survives?

Eichengreen, Barry - C.E.P.R. Discussion Papers - 2008

Alexander Swoboda is one of the originators of the bipolar view that capital mobility creates pressure for countries to abandon intermediate exchange rate arrangements in favor of greater flexibility and harder pegs. This paper takes another look at the evidence for this hypothesis using two...

Persistent link: https://www.econbiz.de/10005498132

Carry

Koijen, Ralph; Moskowitz, Tobias J; Pedersen, Lasse Heje; … - C.E.P.R. Discussion Papers - 2013

Any security’s expected return can be decomposed into its “carry” and its expected price appreciation, where carry is a model-free characteristic that can be observed in advance. While carry has been studied almost exclusively for currencies, we find that carry predicts returns both in the...

Persistent link: https://www.econbiz.de/10011083673