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Against the background of three decades of marked growth in international transactions involving assets, bonds, and currencies, individual project (IP) 10 revisits some of the complex interrelationships among flows, development, and stability of the international capital markets, which are in turn embedded in the trade of goods and services, institutional arrangements, and macroeconomic conditions. Thereto, we draw on standard thought and techniques employed in theoretical and empirical economics on (international) financial markets and regulation. Establishing a better understanding of the international capital market should provide the basis to further and broaden its benefits – such as the promotion of international trade – meanwhile preventing financial instability, which might spillover across economies closely interlinked by capital flows in particular from countries with over-expansionary fiscal and monetary policies.
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Research Projects 
