We provide an overview of the recent developments of the literature on the determinants of
long-term capital flows, global imbalances, and valuation effects. We present the main …

In this paper, we present a model of the financial resource curse (ie, episodes of abundant
access to foreign capital coupled with weak productivity growth). We study a two‐sector (ie …

This paper explores the nature of macroeconomic spillovers from advanced economies to
emerging market economies (EMEs) and the consequences for independent use of …

Based on a dataset of 112 emerging economies and developing countries, this paper
addresses the question whether the accumulation of international reserves has effectively …

We present a model that reproduces two salient facts characterizing the international
monetary system: Fast growing emerging countries i) run current account surpluses, ii) …

We study a real small open economy with two key ingredients (1) partial segmentation of
home and foreign bond markets and (2) a pecuniary externality that makes the real …

This paper proposes a theory of foreign reserves as macroprudential policy. We study an
open economy model of financial crises, in which pecuniary externalities lead to …

We study a real small open economy with two key ingredients:(i) partial segmentation of
home and foreign bond markets and (ii) a pecuniary externality that makes the real …

Long considered suboptimal, capital controls and FX interventions are now recognized as
prudential measures. Yet, whether they are used in combination remains an open question …

This paper explores the effects of capital controls and policies regulating interest rates and
the exchange rate in a model of economic transition applied to China. It builds on Song …