International Financial Integration

International Financial Integration
ISBN-10
1451850905
ISBN-13
9781451850901
Category
Business & Economics
Pages
46
Language
English
Published
2003-04-01
Publisher
International Monetary Fund
Authors
Mr.Gian Milesi-Ferretti, Mr.Philip R. Lane

Description

In recent decades, the foreign assets and liabilities of advanced economies have grown rapidly relative to GDP, with the increase in gross cross-holdings far exceeding changes in the size of net positions. Moreover, the portfolio equity and FDI categories have grown in importance relative to international debt stocks. This paper describes the broad trends in international financial integration for a sample of industrial countries and seeks to explain the cross-country and time-series variation in the size of international balance sheets. It also examines the behavior of the rates of return on foreign assets and liabilities, relating them to "market" returns.

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