This paper constructs a two-country DSGE model to study the nature of the recent financial crisis and its effects that spread immediately throughout the world owing to the globalization of banking. In the model, financial intermediaries (FIs) enter into chained credit contracts at home and...

Since the mid-1980s the world economy has gone through profound transformations of which the sources and effects are probably not yet completely understood. The process of continuous integration in trade, production and financial markets across countries and economic regions—which is what is...

Standard portfolio theories of the home bias are disconnected from corporate finance theories of insider ownership. We merge the two into what we call the optimal ownership theory of the home bias. The theory has the following components. In countries with poor governance, it is optimal for...

Remarks to the 2007 Annual Conference of the Investment Adviser Association, Austin, Texas, April 26, 2007 ; "Many options would improve the fiscal fitness of our entitlement system and reduce the need for drastic action elsewhere in the federal budget. But let's be honest. These remedies work...

Remarks before the O'Neil Center for Global Markets and Freedom Conference, SMU Cox School of Business, Dallas, Texas, October 16, 2009. ; This morning, I will argue that a decline in trade flows, at least to some degree, was to be expected during this tumultuous period, the most severe global...

Remarks before the Australian Business Economists, Sydney, Australia, November 14, 2007. ; Our job has been made more complicated by globalization--the freer flow of goods, services, money, ideas and people across national borders. Its present incarnation owes a great deal to the revolution in...

Remarks before the Dallas Assembly, Dallas, Texas, May 22, 2006 ; "Our globalizing economy is not a vintage car. It is more like a 2006 BMW Z4 roadster, fully equipped and Bluetooth enabled. It is a very complex, highly integrated, technologically advanced and brilliantly engineered vehicle that...