Review of World Economics

, 145:489

The anatomy of large valuation episodes

Original Paper

Abstract

We examine cases in which there is a large shift in a country’s net foreign asset position due to the re-valuation of its foreign assets and/or foreign liabilities. We highlight the differences in large valuation shocks between countries characterized by large gross stocks of foreign assets and foreign liabilities and countries exhibiting large net external positions. Finally, we analyze macroeconomic dynamics in the neighborhood of large valuation episodes.

Keywords

International financial integration Valuation channel Valuation episodes 

JEL Classification

F32 F36 

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Copyright information

© Kiel Institute 2009

Authors and Affiliations

  1. 1.Department of EconomicsInstitute for International Integration Studies, Trinity College DublinDublin 2Ireland

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