This paper examines how the 1990s capital account liberalization policy trend affected international capital flows, and tests a new hypothesis that the depth and efficiency of the domestic financial system impacts the efficacy of capital account policy. The paper exploits a recently published...

We document the recent phenomenon of "uphill" flows of capital from nonindustrial to industrial countries and analyze whether this pattern of capital flows has hurt growth in nonindustrial economies that export capital. Surprisingly, we find that there is a positive correlation between current...

This paper examines how the 1990s capital account liberalization policy trend affected international capital flows, and tests a new hypothesis that the depth and efficiency of the domestic financial system impacts the efficacy of capital account policy. The paper exploits a recently published...

This working paper was written by J. Scott Davis (Federal Reserve Bank of Dallas) and Eric Van Wincoop (University of Virginia and NBER).The correlation between capital inflows and outflows has increased substantially over time in a sample of 127 advanced and developing countries. We provide...

In this paper we show that the MSCI ACWI Metals and Mining Index has the ability to predict base metal prices. We use both in-sample and out-of-sample exercises to conduct such examination. The theoretical underpinning of these results relies on the present-value model for stock-price...

Globalization and strengthening of integration processes have, among other things, also influenced some solutions relating to monetary sovereignty of particular countries. A great number of transition countries as well as some other underdeveloped countries are facing both inefficiency in their...

The main objective of this paper is to examine the effect of exchange rate volatility on international trade. We show that the impact of exchange rate volatility on international trade could be either positive or negative depending on various reasons that are discussed in this study. We focus...

The 2007-09 global financial crisis has led to a rethinking of the role of financial intermediaries for economic fluctuations. Before the financial crisis, the workhorse macro models used by policy institutions and by academic researchers abstracted from banks (e.g., Christiano et al. (2005))....