This paper reviews empirical and theoretical work on the links between banks and their
governments (the bank-sovereign nexus). How significant is this nexus? What do we know …

Intermediary asset pricing understands asset prices and risk premia through the lens of
frictions in financial intermediation. Perhaps motivated by phenomena in the financial crisis …

This paper documents the evolution of international financial integration since the global
financial crisis using an updated dataset on external assets and liabilities, covering 212 …

We find that deviations from the covered interest rate parity (CIP) condition imply large,
persistent, and systematic arbitrage opportunities in one of the largest asset markets in the …

We explore the interplay between trade-invoicing patterns and the pricing of safe assets in
different currencies. Our theory highlights the following points:(i) a currency's role as a unit of …

We develop a theory that links the US dollar's valuation in FX markets to the convenience
yield that foreign investors derive from holding US safe assets. We show that this …

We provide a theory of the determination of exchange rates based on capital flows in
imperfect financial markets. Capital flows drive exchange rates by altering the balance …

We document a triangular relationship in that a stronger dollar goes hand in hand with larger
deviations from covered interest parity (CIP) and contractions of cross-border bank lending …

This paper documents the evolution of international financial integration since the global
financial crisis using an updated dataset on external assets and liabilities, covering over 210 …

We explore the causes of the credit crunch during the European sovereign debt crisis and its
impact on the corporate policies of European firms. Our results show that value impairment …