Saturday , November 2 2024
Home / Dirk Niepelt / Triple Coincidence in International Finance

Triple Coincidence in International Finance

Summary:
On VoxEU, Stefan Avdjiev, Robert McCauley, and Hyun Song Shin discuss how a focus on net capital flows between countries can mislead policy analysts if they neglect heterogeneity between sectors in a country and/or non-congruence of economic and currency area that is, if they assume the “triple coincidence” between economic area, decision-making unit, and currency area. The triple coincidence misleads because it obscures gross flows, … in that it gives insufficient weight to international funding currencies that are extensively borrowed outside the borders of their home countries … if it glosses over the relevant decision-making unit by aggregating too much.

Topics:
Dirk Niepelt considers the following as important: , , , , ,

This could be interesting, too:

Dirk Niepelt writes “Governments are bigger than ever. They are also more useless”

Dirk Niepelt writes The New Keynesian Model and Reality

Dirk Niepelt writes Urban Roadway in America: Land Value

Dirk Niepelt writes A Financial System Built on Bail-Outs?

On VoxEU, Stefan Avdjiev, Robert McCauley, and Hyun Song Shin discuss how a focus on net capital flows between countries can mislead policy analysts if they neglect heterogeneity between sectors in a country and/or non-congruence of economic and currency area that is, if they assume the “triple coincidence” between economic area, decision-making unit, and currency area.

The triple coincidence misleads

because it obscures gross flows, …

in that it gives insufficient weight to international funding currencies that are extensively borrowed outside the borders of their home countries …

if it glosses over the relevant decision-making unit by aggregating too much.

Dirk Niepelt
Dirk Niepelt is Director of the Study Center Gerzensee and Professor at the University of Bern. A research fellow at the Centre for Economic Policy Research (CEPR, London), CESifo (Munich) research network member and member of the macroeconomic committee of the Verein für Socialpolitik, he served on the board of the Swiss Society of Economics and Statistics and was an invited professor at the University of Lausanne as well as a visiting professor at the Institute for International Economic Studies (IIES) at Stockholm University.

Leave a Reply

Your email address will not be published. Required fields are marked *