The Financial Crisis and The Geography of Wealth Transfers

Pierre-Olivier Gourinchas, Hélène Rey, Kai Truempler

NBER Working Paper No. 17353
Issued in August 2011
NBER Program(s):Asset Pricing, International Finance and Macroeconomics, Monetary Economics

This paper studies the geography of wealth transfers during the 2008 global financial crisis. We construct valuation changes on bilateral external positions in equity, direct investment and portfolio debt at the height of the crisis to map 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 ABCP conduits and the extent of dollar shortage.

Acknowledgments

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Document Object Identifier (DOI): 10.3386/w17353

Published:

• Gourinchas, Pierre-Olivier & Rey, Hélène & Truempler, Kai, 2012. "The financial crisis and the geography of wealth transfers," Journal of International Economics, Elsevier, vol. 88(2), pages 266-283. citation courtesy of
• The Financial Crisis and the Geography of Wealth Transfers, Pierre-Olivier Gourinchas, Hélène Rey, Kai Truempler. in Global Financial Crisis, Engel, Forbes, and Frankel. 2012

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