How might a disorderly resolution of global imbalances affect global wealth? /

How might a disorderly resolution of global imbalances affect global wealth? /

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Bibliographic Details
Author / Creator:Warnock, Francis E., author.
Imprint:[Washington, D.C.] : International Monetary Fund, Western Hemisphere Dept., 2006.
Description:1 online resource (26 pages) : graph
Language:English
Series:IMF working paper, 2227-8885 ; WP/06/170
IMF working paper ; WP/06/170.
Subject:
Asset-liability management.
Portfolio management.
Asset-liability management.
Portfolio management.
Format: E-Resource Book
URL for this record:http://pi.lib.uchicago.edu/1001/cat/bib/12498552
Hidden Bibliographic Details
Other authors / contributors:International Monetary Fund. Western Hemisphere Department.
ISBN:1283519003
9781283519007
9781451986150
1451986157
9781451864304
1451864302
1462307426
9781462307425
1452754179
9781452754178
9786613831453
661383145X
Digital file characteristics:data file
Notes:Includes bibliographical references.
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
English.
digitized 2010 HathiTrust Digital Library committed to preserve
Print version record.
Summary:Partly reflecting structural advantages such a liquidity and strong investor protection, foreigners have built up extremely large positions in U.S. (as well as other dollar-denominated) financial assets. This paper describes the impact on global wealth of an unanticipated shock to U.S. financial markets. For every 10 percent decline in the dollar, U.S. equity markets, and U.S. bond markets, total wealth losses to foreigners could amount to about 5 percentage points of foreign GDP. Four stylized facts emerge: (i) foreign countries, particularly emerging markets, are more exposed to U.S. bonds than U.S. equities; (ii) U.S. exposure has increased for most countries; (iii) on average, U.S. asset holdings of developed countries and emerging markets (scaled by GDP) are very similar; and (iv) based on their reserve positions, wealth losses of emerging market governments could, on average, amount to about 2 3/4 percentage points of their GDP.
Other form:Print version: Warnock, Francis E. How might a disorderly resolution of global imbalances affect global wealth?. [Washington, D.C.] : International Monetary Fund, ©2006
Standard no.:10.5089/9781451986150.001
Table of Contents:
  • Contents
  • I. INTRODUCTION
  • II. EXPOSURE TO LONG- TERM U.S. SECURITIES
  • A. Foreign Positions in U.S. Securities in 2004
  • B. Impact of Declines in the Dollar and U.S. Asset Prices
  • C. Evolution of Exposure: 1994 to 2004
  • D. Exposure to Dollar Bonds Issued by Third Countries
  • III. ANOTHER VIEW OF EXPOSURE IN 2004: U.S. LIABILITIES IMPLIED BY CPIS DATA
  • A. CPIS Data
  • B. CPIS Data: Implied U.S. Liabilities and Impact of U.S. Financial Market Shocks
  • IV. CONCLUSION
  • References

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