"The empirical literature in international finance has produced three key results about international price deviations: borders give rise to flagrant violations of the law of one price, distance matters enormously for understanding these deviations, and most papers find that convergence rates...

Few months after the onset of the crisis, the flight to safe assets at world level benefited the US treasuries, while the financial deleveraging favored the US dollar. Once the economic and market conditions return to normal, we will see a reversal of these trends (i.e., a weakened dollar and an...