papers - week 3 seminar

Question 1

accominotti and eichengreen (2016)

Answer 1

• conditions in international capital markets (not just in borrowing countries) are important for explaining surge and reversal in capital flows
• particularly the sharp increase in stock market volatility in the major financial centres at the end of 1920s figured importantly in decline in foreign lending

Question 2

borio (2016)

Answer 2

• current accounts have always been the centre of international economics and policy - they tell a lot about capital flows, financing economic activity, countries roles in financial intermediation, lending and borrowing, and risks of financial instability