This paper describes the stylized facts characterizing periods of exceptionally large capital
inflows in a sample of 70 middle-and high-income countries over the last 35 years. We …

We study the problem of a monetary authority pursuing an exchange rate policy that is
inconsistent with interest rate parity because of a binding zero lower bound constraint. The …

Sudden Stops are financial crises defined by a large, sudden current-account reversal. They
occur in both advanced and emerging economies and result in deep recessions, collapsing …

In a large panel of 26 emerging countries over the last 40 years, stock market return
volatilities forecast capital flows. When a country's stock market volatility increases, capital …

This paper studies exchange rate policy in a small open economy model featuring an
occasionally binding collateral constraint and Fisherian deflation. The goal is to evaluate the …

This paper proposes a postcrisis New Keynesian model that incorporates agent
heterogeneity in borrowing and lending with a minimum set of assumptions. Unlike the …

We provide a model connecting the global saving glut to productivity growth. The key feature
is that the tradable sector is the engine of growth of the economy. Capital flows from …

An independent monetary policy and a flexible exchange rate generally help a country in
adjusting to macroeconomic shocks. But recently in many countries, interest rates have been …

Motivated by debates surrounding international capital flows during the Great Recession, we
conduct a positive and normative analysis of capital flows when a region of the global …

This paper describes a paradox of global thrift. Consider a world in which interest rates are
low and monetary policy is constrained by the zero lower bound. Now imagine that …