This paper investigates the relationship between capital account openness and the share of
labour in national income. Employing a new index of financial openness and a cross-country …

We study the implications of introducing demand shocks and trade in goods into an
otherwise standard international asset pricing model. Trade in goods gives rise to an …

We combine data on international trade linkages with network methods to examine the
global trading system as an interdependent complex network. We map the topology of the …

This paper presents a canonical, econometric model of contagion and investigates the
conditions under which contagion can be distinguished from interdependence. In a two …

Eswar S. Prasad is currently the Chief of the Financial Studies division of the research
department in the International Monetary Fund. Kenneth Rogoff is the Thomas D. Cabot …

The evidence here indicates that sovereign debt rating and credit outlook changes of one
country have an asymmetric and economically significant effect on the stock market returns …

An empirical model of multiple asset classes across countries is formulated in a latent factor
framework. A special feature of the model is that financial market linkages during periods of …

A particularly important sector for the stability of financial systems is the banking sector.
Banks play a central role in the money creation process and in the payment system …

This article challenges the notion that the reform of accounting principles in accordance with
fair value would provide better information, and that more transparency would reinforce the …

This study examines how heterogeneity of private information may induce financial
contagion. Using a model of multi-asset trading in which the three main channels of …