When the sovereign yield in an investor's own country falls, that country's private investors hold more U.S. bonds and tilt the mix toward riskier corporate debt rather than Treasuries. Across 31 …
PublishedClassicJournal of International Money and FinancePublished Aug 1983
This 1983 Journal of International Money and Finance paper by Maurice Obstfeld (NBER Working Paper No. 1100) uses an infinite-horizon optimizing model of a small open economy to show that a temporary …