1 / 8

Puzzles of Global Finance and Trade: A Comprehensive Study

Delve into the intricate world of international finance with "SIX PUZZLES" by Maurice Obstfeld and Kenneth Rogoff. Explore the Feldstein-Horioka Puzzle, Home Bias in Trade, Consumption Correlation, Purchasing Power Parity, Meese-Rogoff Forecasting, and Home Bias in Portfolio. Unravel the complexities of national saving rates, domestic investment, intertemporal shocks, asymmetric information, and trade costs in global economics.

fullers
Download Presentation

Puzzles of Global Finance and Trade: A Comprehensive Study

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. SIX PUZZLES By Maurice Obstfeld and Kenneth Rogoff • Feldstein-Horioka • Home-Bias in Trade (Trefler’s “MissingTrade”) • Consumption-Correlation Puzzle • Purchasing-Power Parity Puzzle • Meese-Rogoff Forecasting Puzzle • Home-Bias in Portfolio

  2. The Feldstein-Horioka Puzzle: long time average national saving rates are highly correlated with similar averages of domestic investment rates for OECD countries with high degree of capital mobility, which seperates saving and investment decisions. • The intertemporal-persistent shock explanation • The portfolio asymmetric- information explanation • The trade-costs explanation:

  3. A Two-Good Model

More Related