Financial globalization is one of the defining features of the world economy. Cross-border financial holdings have exploded in the last forty years, and are often many times larger than annual national income for advanced economies. As our economies become ever more financially inter-twinned, the effectiveness of traditional macroeconomic policies and their interactions is rapidly evolving. Global banking and portfolio flows deeply affect the resilience and stability of our financial systems, and the sustainability of public debts. The Clausen Center is at the forefront of the intellectual efforts to better understand this complex and rapidly changing landscape.
International Financial Architecture
Since 1973 and the collapse of the Bretton Woods system of fixed but adjustable parities, the world economy has experienced profound transformations. This research initiative explores vital questions such as the role of the US dollar as a reserve currency, the evolving nature of financial fragilities in advanced and developing nations; the necessary reforms of the international monetary system; the nature of currency wars; the coordinated regulation and supervision of financial institutions and markets; the role of international organizations such as the International Monetary Fund in dealing with sovereign and external crises. Members of the Clausen center consult repeatedly with the IMF, the World Bank, the Bank for International Settlements, the European Commission, the European Central Bank, the US Federal Reserve, the Bank of England or the Bank of Japan, on these matters.
International Trade & Development
Economic integration with the rest of the world has been a central feature of rapid-growth experiences in the last decades. At the same time, however, many countries that have adopted more open regimes to international trade and foreign direct investment have not reaped the expected benefits. We need to better understand the connection between economic integration and economic development. Under what conditions does more open trade and investment policies promote development? Members of the Clausen Center are pursuing work at the research frontier to better understand the impact of trade and foreign direct investment on welfare and development, as well as its differential effects across groups of agents in the economy. The expectation is that the fruits of this research will better guide policies to harness the opportunities associated with economic integration for development.
International Business Education
Business is international. Whether through international trade, foreign direct investment, cross-border portfolio flows, policy decisions on intellectual property, regulations, and taxes around the world, or the competitive environment of an industry in any particular economy, business is shaped by international circumstances. The Clausen Center will bring the frontiers of research on international business and policy to the business community. Through executive education training, the Center will enhance the ability of professionals working in the private and public sectors to make sound evaluations and decisions about global economic challenges. This initiative is tailored to support the practice of international business and policy. The Clausen Center will also support developing new teaching material (cases), and it will stimulate academic dialogue by bringing business leaders and policy makers to the classroom
Grants & Fellowships
by Roman Zarate The goal of this project is to study how competition and firm market power shape the productivity distribution and the way that firms locate into space. In particular, low productive firms sort into places in which they exert more market power, while...
by Sergii Meleshchuk For a draft of the paper, see here. Most models in contemporary international economics and macroeconomic literature make the assumption that sellers charge all buyers the same price for the same good in a specific geographic market. In reality,...
by Piyus Panigrahi Liberalized mobility of goods and services across regions within a country gives rise to greater integration of markets for products. This results in these products being manufactured by more productive firms using a more efficient set of inputs,...
by Gabriel Zucman (UC Berkeley) and Anders Jensen (Harvard Kennedy School) For a presentation of this research, see here. Why do developing countries have low tax-to-GDP ratios? Is it because they are not able to tax (due, e.g., to the informal structure of the...