Enrico Perotti

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Cheap But Flighty: How Global Imbalances Create Financial Fragility

Staff Working Paper 2015-33 Toni Ahnert, Enrico Perotti
We analyze how a wealth shift to emerging countries may lead to instability in developed countries. Investors exposed to expropriation risk are willing to pay a safety premium to invest in countries with good property rights.
Content Type(s): Staff Research, Staff Working Papers Topic(s): Financial Institutions, Financial stability JEL Code(s): F, F3, G, G2

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