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NBER Working Papers and Publications
|August 2011||ABS Inflows to the United States and the Global Financial Crisis|
with Laurie Pounder DeMarco, Steven B. Kamin, Ralph W. Tryon: w17350
The "global saving glut" (GSG) hypothesis argues that the surge in capital inflows from emerging market economies to the United States led to significant declines in long-term interest rates in the United States and other industrial economies. In turn, these lower interest rates, when combined with both innovations and deficiencies of the U.S. credit market, are believed to have contributed to the U.S. housing bubble and to the buildup in financial vulnerabilities that led to the financial crisis. Because the GSG countries for the most part restricted their U.S. purchases to Treasuries and Agency debt, their provision of savings to ultimately risky subprime mortgage borrowers was necessarily indirect, pushing down yields on safe assets and increasing the appetite for alternative investme...
Published: Carol Bertaut & Laurie Pounder DeMarco & Steven Kamin & Ralph Tryon, 2012. "ABS inflows to the United States and the global financial crisis," Journal of International Economics, vol 88(2), pages 219-234.
|June 2011||ABS Inflows to the United States and the Global Financial Crisis|
with Laurie Pounder DeMarco, Steve Kamin, Ralph Tryon
in Global Financial Crisis, Charles Engel, Kristin Forbes, and Jeffrey Frankel, organizers