The mother of all sudden stops: Capital flows and reversals in Europe, 1919-1932 by Olivier Accominotti and Barry Eichengreen Appeared originally at Voxeu.org 14 September 2013 From 2001 to 2008, half of Europe received capital inflows from the other half and beyond. In 2009, that stopped, capital accounts switched signs and a crisis occurred. This …
Tag Archives: capital flows
Macroeconomic Considerations for Global Investing
Trade Balances, Capital Flows, and Exchange Rates: Worth Considering When Making Foreign Investments by Elliott R. Morss, Morss Global Finance Introduction If you are an American investor, you exchange US$ for EUR to buy EUR stocks – the opposite when you sell. That means a weaker dollar over your investment period would result in you …
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Trade Reversal: If Not Now, When?
by Michael Pettis Europe’s underlying problem is not budget deficits or even unsustainable debt. These are mainly symptoms. The real problem with Europe is the huge divergence in costs between the core and the periphery – in the past decade costs between Germany and some of the peripheral countries have diverged by anywhere from 20% …
The G-20 Meetings: Bernanke on Capital Flows
International capital flows appear to show the U.S. has a low savings rate and China a high savings rate. However, these conclusions are modified when capital gains are considered.