Global financial imbalances can result from financial integration when countries differ in
financial markets development. Countries with more advanced financial markets accumulate …

Using a monthly data set on the foreign equity and bond portfolios of US investors and the
US equity and bond portfolios of foreign investors, we find that the returns differential for …

This paper analyses the role of asset prices in comparison to other factors, in particular
exchange rates, as a driver of the US trade balance. It employs a Bayesian structural VAR …

'Valuation effects' can imply that the traditional current account is an inaccurate measure of
the change in the net foreign asset (NFA) position. This paper uses new developments in the …

Although Europe in the aggregate is not a major contributor to global current account
imbalances, its trade and financial linkages with the rest of the world mean that it will still be …

The deterioration in the US net external position in recent years has been much smaller than
the extensive net borrowing associated with large current account deficits would have …

We address the impact on international monetary power of the size and nature of the US's
international financial assets and liabilities. Financial globalization makes critical a focus on …

A central aspect of the recent debate on global imbalances and the US current account
deficit is the role of the exchange rate peg being followed by China and other Asian …

Recent evidence on the importance of cross-border equity flows calls for a rethinking of the
standard theory of external adjustment. We introduce equity holdings and portfolio choice …

Dispelling the myth of decline, Stuart Brown argues that the US continues to enjoy the
economic, political, cultural and military underpinnings befitting a pre-eminent global power …