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The Financial Crisis and the Geography of Wealth Transfers

In: Global Financial Crisis

  • Pierre-Olivier Gourinchas
  • Hélène Rey
  • Kai Truempler

This paper studies the geography of wealth transfers between 2007Q4 and 2008Q4, at the height of the global financial crisis. We construct valuation changes on bilateral external positions in equity, direct investment and portfolio debt to measure who benefited and who lost on their external exposure. We find a very diverse set of fortunes governed by the structure of countries' external portfolios. In particular, we are able to relate the gains and losses on debt portfolios to the country's exposure to ABS, ABCP conduits and the extent of dollar shortage.

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This chapter was published in:
  • Charles Engel & Kristin Forbes & Jeffrey Frankel, 2012. "Global Financial Crisis," NBER Books, National Bureau of Economic Research, Inc, number enge11-2, October.
  • This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number 13168.
    Handle: RePEc:nbr:nberch:13168
    Contact details of provider: Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
    Phone: 617-868-3900
    Web page: http://www.nber.org
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