Published American Economic Review Online 1 Nov 2025 Published Nov 2025A Preferred-Habitat Model of Term Premia, Exchange Rates, and Monetary Policy SpilloversPierre-Olivier Gourinchas · Walker Ray · Dimitri VayanosThe paper develops a two-country preferred-habitat model in which currency and bond markets are populated by different investor clienteles — currency traders with price-elastic demand for foreign …