Financing of global imbalances /

Financing of global imbalances /

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Bibliographic Details
Author / Creator:	Walker, W. Christopher.
Imprint:	[Washington, D.C.] : International Monetary Fund, Monetary and Capital Markets, ©2007.
Description:	1 online resource (21 pages) : illustrations
Language:	English
Series:	IMF working paper ; WP/07/177 IMF working paper ; WP/07/177.
Subject:	Capital movements -- United States -- Econometric models. Bonds -- United States -- Econometric models. Balance of payments -- United States -- Econometric models. Interest rates -- United States -- Econometric models. Balance of payments -- Econometric models. Bonds -- Econometric models. Capital movements -- Econometric models. Interest rates -- Econometric models. United States.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12496899

Hidden Bibliographic Details
Other authors / contributors:	Punzi, Maria Teresa, author. International Monetary Fund. Monetary and Capital Markets Department.
ISBN:	1283513145 9781283513142
Notes:	Includes bibliographical references (page 21). Restrictions unspecified Electronic reproduction. [Place of publication not identified] : HathiTrust Digital Library, 2010. Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 digitized 2010 HathiTrust Digital Library committed to preserve Print version record.
Summary:	To assess the conditions for the financing of the U.S. current account, this paper analyzes the determinants of bond flows into the United States, using a data set constructed for the period 1994-2006 from U.S. Treasury International Capital Flows (TIC) statistics. Panel vector autoregression and instrumental variables approaches are used to estimate the impact of changes in interest rate differentials and other fundamentals on capital flows into the U.S. The paper finds evidence for an impact from interest rate differentials to bond inflows that has increased over time, consistent with a theoretical model of declining home bias.
Other form:	Print version: Walker, W. Christopher. Financing of global imbalances. [Washington, D.C.] : International Monetary Fund, Monetary and Capital Markets, ©2007

Description
Summary:	This paper analyzes the determinants of bond flows, now the dominant source of capital inflows, into the United States, as a means of establishing conditions affecting the financing of the U.S. current account deficit. To test the hypothesis that capital flows have become more responsive to changes in relative interest rates and other conditions across borders, a panel data set, showing bond flows from 12 separate jurisdictions into the United States, is constructed for the period 1994-2006 using adjusted U.S. Treasury International Capital Flow (TIC) data. Panel vector autoregression and instrumental variables approaches are used to estimate the impact of changes in interest rate differentials and other fundamentals on capital flows into the U.S. The paper finds evidence for an impact from interest rate differentials to bond inflows that has increased over time. Under one plausible set of theoretical assumptions, the increased sensitivity can be interpreted as resulting from a reduction in home bias on the part of non-US investors.
Physical Description:	1 online resource (21 pages) : illustrations
Format:	Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002.
Bibliography:	Includes bibliographical references (page 21).
ISBN:	1283513145 9781283513142