Pierre-Olivier Gourinchas

TL;DR: An overview of the recent developments of the literature on the determinants of long-term capital flows, global imbalances, and valuation effects is provided in this article, where 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.

TL;DR: Caballero et al. as discussed by the authors define a safe asset as a simple debt instrument that is expected to preserve its value during adverse systemic events (for example, Caballero and Farhi 2017).

TL;DR: In this paper, the Gourinchas and Rey (2007a) dataset of the historical evolution of US external assets and liabilities at market value was updated and improved to include the recent crisis period.

TL;DR: In this paper, the authors argue that the persistent global imbalances, the subprime crisis, and the volatile oil and asset prices that followed it, are tightly interconnected, and they all stem from a global environment where sound and liquid financial assets are in scarce supply.

TL;DR: In this article, the authors decompose cross-border retail prices into relative costs and markup components, and show that the high correlation of nominal and real exchange rates is driven mainly by changes in relative costs.