This lecture argues that the Global Financial Cycle is a challenge for the validity of the
Mundellian trilemma. The paper presents evidence that US monetary policy shocks are …

… While the standard macroeconomic model implicitly used in this section can perhaps provide
a first answer, it is potentially in direct conflict with the Rey model used in sections 2–4. For …

We find that one global factor explains an important part of the variance of a large cross section
of returns of risky assets around the world. Using a model with heterogeneous investors, …

We provide an overview of the recent developments of the literature on the determinants of
long-term capital flows, global imbalances, and valuation effects. We present the main …

… Hélène Rey received her undergraduate degree from ENSAE, a Master in Engineering
Economic Systems from Stanford University and her PhDs from the London School of Economics …

This report was written by The Committee on International Economic Policy and Reform, a
non-partisan and non-ideological group of independent experts, comprised of academics and …

International currencies fulfill different roles in the world economy, with important synergies
across those roles. We explore the implications of currency hegemony for the external …

We construct novel text-based measures of firm-level cyber risk exposure based on quarterly
earnings calls of 12,000+ firms from 85 countries over 20+ years. We categorize each …

The Committee on International Economic Policy and Reform is a non-partisan, independent
group of experts, comprised of academics and former government and central bank officials…

Before the 2008 crisis, the cross-sectional skewness of banks’ leverage went up and macro
risk concentrated in the balance sheets of large banks. Using a model of profit-maximizing …