Working Paper: CEPR ID: DP9566
Authors: Pierre-Olivier Gourinchas; Hélène Rey
Abstract: 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 stylized facts of the new international financial landscape in which external balance sheets of countries have grown in size and discuss implications for the international monetary and financial system.
Keywords: Capital Flows; International Finance; International Monetary System
JEL Codes: F32; F33; F41; F42
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| capital scarcity (D24) | capital flows (F32) |
| long-run growth prospects (E66) | capital flows (F32) |
| low autarky returns (F00) | capital flows (F32) |
| high autarky returns (F00) | capital flows (F32) |
| valuation effects (Q51) | net foreign asset positions (F32) |
| capital flows (F32) | external balance sheet (F30) |