External Adjustment, Global Imbalances, Valuation Effects

Gourinchas, P-O and Rey, H (2014) External Adjustment, Global Imbalances, Valuation Effects. In: Handbook of International Economics. Elsevier, pp. 585-645. ISBN 9780444543141

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.