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Portfolio Flows in a two-country RBC model with financial intermediaries

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  • Haakon Kavli
  • Nicola Viegi

Abstract

The paper presents a two-country real business cycle model with a financial sector that intermediates portfolio flows. It is changes in demand for nancial assets from foreign investors relative to domestic investors that gives rise to portfolio flows. The simulations show that portfolio flows to emerging markets respond negatively to global risk in line with […]

Suggested Citation

  • Haakon Kavli & Nicola Viegi, 2015. "Portfolio Flows in a two-country RBC model with financial intermediaries," Working Papers 550, Economic Research Southern Africa.
    • Handle: RePEc:rza:wpaper:550
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    References listed on IDEAS

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    More about this item

    Keywords

    capital market; Corporate Governance; Other Macroeconomic Variables;
    All these keywords.

    JEL classification:

    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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