This paper makes a case that the global imbalances of the 2000s and the recent global
financial crisis are intimately connected. Both have their origins in economic policies …

There is a widespread belief that changes in expectations may be an important independent
driver of economic fluctuations. The news view of business cycles offers a formalization of …

This paper surveys the literature on the linkages between asset prices and macroeconomic
outcomes. It focuses on three major questions. First, what are the basic theoretical linkages …

We examine international equity allocations at the fund level and show how excess foreign
returns influence portfolio rebalancing, capital flows, and currencies. Our equilibrium model …

The causes and consequences of the Euro crisis have led comparative political economy
scholars to question whether European integration can accommodate diverse models of …

The recent financial crisis has put the spotlight on the rapid rise in credit which preceded it.
In this paper, we provide an empirical and theoretical analysis of the credit boom and the …

Using vector autoregressions on US time series relative to an aggregate of industrialized
countries, this paper provides new evidence on the dynamic effects of government spending …

Abstract The Great Financial Crisis of 2007-09 confirmed the vital importance of advancing
our understanding of macrofinancial linkages, the two-way interactions between the real …

Domestic factors, such as credit and preference shocks, can explain the negative correlation
between house prices and the current account in the US and several other countries before …

The withdrawal of foreign capital from emerging countries at the height of the recent financial
crisis and its quick return sparked a debate about the impact of capital flow surges on asset …