International Liquidity and Exchange Rate Dynamics
---- Acknowledgements -----
We thank John Campbell, Nicolas Coeurdacier, Bernard Dumas, Emmanuel Farhi, Kenneth Froot, Nicolae Garleanu, Pierre-Olivier Gourinchas, Arvind Krishnamurthy, Maurice Obstfeld, Anna Pavlova, Fabrizio Perri, Hélène Rey, Kenneth Rogoff, Hyun Song Shin, Andrei Shleifer, and seminar participants at NBER (International Asset Pricing, Macroeconomics Within and Across Borders), Harvard University, Stanford SITE meeting, UC Berkeley, University of Chicago Booth, Northwestern University, Yale University, University of Minnesota, Minneapolis Fed, University of Michigan, UT Austin, Chicago/NYU Junior Conference in International Macroeconomics and Finance, Paris School of Economics, INSEAD, AEA annual meeting, and NYU. We thank Miguel de Faria e Castro and Jerome Williams for excellent research assistance. We gratefully acknowledge the financial support of the Dauphine-Amundi Foundation and the NYU CGEB. Gabaix gratefully acknowledges the NSF support (SES-0820517). Maggiori thanks the International Economics Section, Department of Economics, Princeton University for hospitality during part of the research process for this paper. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.