Munich Personal RePEc Archive

Global Imbalances with Safe Assets in Eurozone

Ly-Dai, Hung (2014): Global Imbalances with Safe Assets in Eurozone.

[img] PDF
MPRA_paper_90238.pdf

Download (1MB)

Abstract

In one open two-country economy, a higher domestic productivity level raises both mean and variance of wealth dynamic, and can lead to a greater accumu- lation of safe assets. The empirical evidences on the 19 countries of Eurozone confirm that the safe assets exchange supports the international risk-sharing across countries. Moreover, in comparison with the risky investments (FDI and Portfolio Equities), the safe assets (Bonds) are the dominant driver of global imbalances within Eurozone.

Logo of the University Library LMU Munich
MPRA is a RePEc service hosted by
the University Library LMU Munich in Germany.