Global Imbalances and Financial Fragility

By Ricardo J. Caballero, Arvind Krishnamurthy. 2009

416 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/32ef40c45221528f4c7fead5c6a2070578eb6cd9

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Citations in the corpus

Financial Intermediation, International Risk Sharing, and Reserve Currencies (2017, background): “A long-standing literature has highlighted the importance of trade costs for international finance (Samuelson (1954), Dumas (1992), Obstfeld and Rogoff (2001), Coeurdacier (2009)), while a fast-growing literature is analyzing the collapse in trade during the 2008 crisis.”
Securitization is Not that Evil after All (2011, neutral): “The originate-to-distribute (OTD) model was also considered to have helped to satisfy a growing demand for safe assets (Caballero and Krishnamurthy, 2009).”
How Debt Markets Have Malfunctioned in the Crisis (2009, neutral): “Caballero and Krishnamurthy (2009) argue that the demand for safe/liquid securities over the last decade, driven by global imbalances, helps to explain the increase in fi nancial sector leverage prior to the current crisis.”
Benefits and Costs of Bank Capital (2016, background): “…and Pennacchi 1990; Caballero and Krishnamurthy 2008), agency costs in the money management of corporations and sovereigns that make them eschew any investment risk (Caballero and Krishnamurthy 2009), or the usefulness of risk-insensitive claims as a transactions medium (Dang and others 2014).”
The External Balance Assessment (EBA) Methodology (2013, background): “44 Other contributions relating financial development to current accounts are offered, for example, by Caballero and Krishnamurthy (2009), Maggiori (2011), Mendoza, Quadrini, and Ríos-Rull (2009) and Sandri (2010).”
Modeling the Change of Paradigm: Non-Bayesian Reactions to Unexpected News † (2012, background): “(See Caballero and Krishnamurthy 2009; Caballero and Simsek 2009; Guidolin and Rinaldi 2010; and Routledge and Zin 2009.)”
International Capital Flows and House Prices: Theory and Evidence (2012, neutral): “In a similar spirit, Caballero and Krishnamurthy (2009) identify the start of the housing boom with the Asian …nancial crisis which fueled the demand for U.S. risk-free assets.”
Global trends in interest rates (2018, methodology): “Building on the work of Krishnamurthy and VissingJorgensen (2012), we assume that these corporate bonds are both less safe and less liquid”
Manufacturing Tail Risk: A Perspective on the Financial Crisis of 2007-09 (2010, neutral): “Some observers (for example Caballero and Krishnamurthy, 2009) have additionally argued that the appetite of surplus countries for risk-free assets left the US economy fragile by concentrating the real risks in its financial sector.”
The Aggregate Demand for Treasury Debt (2012, neutral): “Then, e T t = P T t = Et[Mt+1P T t+1] 1 − v′(θA t /GDPt; ξt) ≈ e (θ t Et[Mt+1] (11)”
Safety, Liquidity, and the Natural Rate of Interest (2017, result): “, Caballero and Krishnamurthy, 2009; Caballero, 2010; Caballero and Farhi, 2014; Caballero et al., 2015; Gourinchas and Rey, 2016).(7) One implication of this shortage is that the yield of safe assets, relative to assets that are less safe, should have seen a secular decline, which is exactly what w”
The History and Economics of Safe Assets (2016, neutral): “Gourinchas & Rey (2007), Caballero et al. (2008), Caballero & Krishnamurthy (2009), and Maggiori (2013) provide models of this.”