{"product_id":"international-finance-discussion-papers-financial-integration-entrepreneurial-risk-and-global-dynamics-9781288704170","title":"International Finance Discussion Papers: Financial Integration, Entrepreneurial Risk and Global Dynamics","description":"\u003cp\u003e • Author(s): Vasia Panousi | George Marios Angeletos | United States Federal Reserve Board\u003cbr\u003e • Publisher: Bibliogov\u003cbr\u003e • Publisher Imprint: Bibliogov\u003cbr\u003e • BISAC: General\u003c\/p\u003e\u003cp\u003eHow does financial integration impact capital accumulation, current-account dynamics, and cross-country inequality? This paper investigates this question within a two-country, general-equilibrium, incomplete-markets model that focuses on the importance of idiosyncratic entrepreneurial risk---a risk that introduces, not only a precautionary motive for saving, but also a wedge between the interest rate and the marginal product of capital. Our contribution is then to show that this friction provides a simple explanation for the emergence of global imbalances, a simple resolution to the empirical puzzle that capital often fails to flow from the rich or slow-growing countries to the poor or fast-growing ones, and a distinct set of policy lessons regarding the intertemporal costs and benefits of capital-account liberalization.\u003c\/p\u003e","brand":"Bibliogov","offers":[{"title":"Paperback","offer_id":47572533936279,"sku":"9781288704170","price":1439.0,"currency_code":"INR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0666\/3471\/1191\/files\/9781288704170.webp?v=1774890243","url":"https:\/\/atlanticbooks.com\/products\/international-finance-discussion-papers-financial-integration-entrepreneurial-risk-and-global-dynamics-9781288704170","provider":"Atlantic Books","version":"1.0","type":"link"}