A Theory of Economic Coercion and Fragmentation
Christopher Clayton, Matteo Maggiori, Jesse Schreger - Working Paper, March 2024
Mechanisms that generate gains from integration and specialization, such as external economies of scale, also increase hegemonic countries’ power to exert economic influence because in equilibrium they make other relationships poor substitutes for those with global hegemons. Other countries attempt to isolate their economies from undue influence by resorting to inefficient home alternatives. The resulting fragmentation of the global trade and financial system is inefficient.
A Framework for Geoeconomics
Christopher Clayton, Matteo Maggiori, Jesse Schreger - Working Paper, January 2024
Revise & Resubmit at Econometrica
A framework for analyzing geopolitical and economic competition around the world. Based on global financing and production networks. Geopolitical power arises from the ability of hegemons to consolidate threats across different economic domains into joint threats to exert pressure and extract surplus from other countries and firms.
Best Paper Award in Geoeconomics, for junior researchers, CEPR-Kiel-Bocconi, 2024
International Currency Competition
Christopher Clayton, Amanda Dos Santos, Matteo Maggiori, Jesse Schreger - Working Paper, November 2024
We analyze how countries compete to become an international safe asset provider in a dynamic reputation framework. We show how reputation of a country can be estimated in real time using holdings data on sovereign bonds.
The geography of capital allocation in the euro Area
Roland Beck, Antonio Coppola, Angus Lewis, Matteo Maggiori, Martin Schmitz, Jesse Schreger - Working Paper, May 2024
Revise & Resubmit at Quarterly Journal of Economics
Investigates financial integration in the Euro Area focusing on the role of European “onshore offshore financial centers” (OOFCs): Luxembourg, Ireland, and the Netherlands.
Corporate Debt Structure with Home and International Currency Bias
Matteo Maggiori, Brent Neiman, Jesse Schreger - IMF Economic Review, 2024, written for IMF conference in honor of Ken Rogoff
We explore the consequences of global capital market segmentation by currency for the currency composition of corporate debt.
GLOBAl capital allocation
Sergio Florez-Orrego, Matteo Maggiori, Jesse Schreger, Ziwen Sun, Serdil Tinda - Annual Review of Economics, 2024
We survey the literature on global capital allocation.
China In Tax Havens
Christopher Clayton, Antonio Coppola, Amanda Dos Santos, Matteo Maggiori, Jesse Schreger – AEA Papers and Proceedings, 2023
We document the rise of China in offshore capital markets over the past twenty years.
Selected media coverage: Bloomberg | New York Times
Internationalizing like china
Christopher Clayton, Amanda Dos Santos, Matteo Maggiori, Jesse Schreger — Forthcoming in the American Economic Review
We investigate the foreign holdings of Renminbi bonds and provide a theoretical framework to understand China's strategy to internationalize its currency.
Selected media coverage: Bloomberg | The Economist | Business Insider | Bloomberg
Redrawing the Map of Global Capital Flows: The Role of Cross-Border Financing and Tax Havens
Antonio Coppola, Matteo Maggiori, Brent Neiman, Jesse Schreger — Quarterly Journal of Economics, 2021
A methodology to restate global capital flow statistics from a residency to a nationality basis. Unmasks issuance in tax havens. Flows from developed countries to emerging market are much larger than previously known.
Selected media coverage: The Economist | Financial Times | Bloomberg | Financial Times, Alphaville | The Wire China | Il Sole 24 Ore (1) | Il Sole 24 Ore (2) | NBER Digest
EXCHANGE RATE RECONNECT
Andrew Lilley, Matteo Maggiori, Brent Neiman, Jesse Schreger — Review of Economics and Statistics, 2022
After the 2008 financial crisis, exchange rates reconnected to U.S. purchases of foreign bonds and measures of risk premia. Sheds new light on exchange rate disconnect.
The Rise of the Dollar and Fall of the Euro as International Currencies
Matteo Maggiori, Brent Neiman, Jesse Schreger — AEA Papers and Proceedings, 2019
Starting with the 2008 financial crisis, the U.S. dollar experienced an increase in its international currency role, while the Euro experienced a corresponding decline. The switch is broad-based across bonds, loans, and invoicing in goods markets.
International Currencies and Capital Allocation
Matteo Maggiori, Brent Neiman, Jesse Schreger — Journal of Political Economy, 2020 (Lead Article)
Establishes the presence of home currency bias and shows that in bonds home bias is largely the result of home currency bias. The U.S. dollar’s special status allows U.S. firms to overcome foreigners’ home currency bias.
Selected media coverage: WSJ | Forbes | NBER Digest | PI | Market Watch (1) 1 | Market Watch (2) | Central Banking | World Economic Forum | The Economist