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.

Corporate Debt Structure with Home and International Currency Bias

Matteo Maggiori, Brent Neiman, Jesse Schreger - Working Paper, October 2023

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 - Working Paper, August 2023

We survey the literature on global capital allocation.

A Framework for Geoeconomics

Christopher Clayton, Matteo Maggiori, Jesse Schreger - Working Paper, June 2023

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.

Non-Technical Brief

Slides

The geography of capital allocation in the euro Area

Roland Beck, Antonio Coppola, Angus Lewis, Matteo Maggiori, Martin Schmitz, Jesse Schreger - Working Paper, March 2023

Investigates financial integration in the Euro Area focusing on the role of European “onshore offshore financial centers” (OOFCs): Luxembourg, Ireland, and the Netherlands.

Data & Code

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

Non-Technical Brief

Data & Code

Internationalizing like china

Christopher Clayton, Amanda Dos Santos, Matteo Maggiori, Jesse Schreger – Working Paper, March 2022

Revise & Resubmit at 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

Non-Technical Brief

Slides

NBER WP with Further Results

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.

Appendix

Data & Code

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

Non-Tech Summary

Short Video

Appendix

Data & Code