Pierre-olivier Gourinchas

International Financial Adjustment ∗ (2009)

Pierre-olivier Gourinchas, Hélène Rey

The paper explores the implications of a country’s external budget constraint and long run stability conditions to study the dynamics of net foreign assets and exchange rate movements. We show that...

For many helpful comments, we thank (2007)

Sydney Ludvigson, Alexander Michaelides, Orazio Attanasio, Dave Backus, Ben Bernanke, John Y. Campbell, ...

cations of Buffer Stock Saving Behavior. � Updated versions of this paper may be found at

Intermediate Goods and Weak Links: A Theory of Economic Development (2007)

Charles I. Jones, Andy Atkeson, Pol Antras, Sustanto Basu, Olivier Blanchard, Bill Easterly, ...

Per capita income in the richest countries of the world exceeds that in the poorest countries by more than a factor of 50. What explains these enormous differences? This paper returns to two old...

Financial Integration, Financial Deepness and Global Imbalances 1 (2007)

Enrique G. Mendoza, Vincenzo Quadrini, Pierre-olivier Gourinchas, Gita Gopinath, Ayse Imrohoroglu, Ro Rebucci, ...

for sharing with us their cross-country data on foreign asset positions. We also thank participants at presentations in Carlos III in Madrid, European University

An Equilibrium Model of "Global Imbalances" and Low Interest Rates (2006)

Caballero, Ricardo J, Farhi, Emmanuel, Gourinchas, Pierre-Olivier

Three of the most important recent facts in global macroeconomics -- the sustained rise in the US current account deficit, the stubborn decline in long run real rates, and the rise in the share of US...

The Weak Link Theory (2006)

Of Economic Development, Charles I. Jones, Luis Garicano, Pierre-olivier Gourinchas, Chang Hsieh, Pete Klenow, ...

This paper returns to two old ideas in development economics and proposes that complementarity and linkages are at the heart of the explanation

International Financial Adjustment (2005)

Gourinchas, Pierre-Olivier, Rey, Hélène

The paper proposes a unified framework to study the dynamics of net foreign assets and exchange rate movements. We show that deteriorations in a country's net exports or net foreign asset position...

From World Banker to World Venture Capitalist (2005)

Pierre-olivier Gourinchas, Hélène Rey

Does the center country of the International Monetary System enjoy an “exorbitant privilege ” that significantly weakens its external constraint as has been asserted in some European quarters?...

Do we really know that the WTO increases trade (2004)

Richard Baldwin, Barry Eichengreen, Rob Feenstra, Jeff Frankel, Hans Genberg, ...

Harrison for data assistance; and the HKMA, the MAS and Princeton University for hospitality and helpful seminar feedback. Asher Isaac and an EASE 13 paper by David Li and Changqi Wu inspired me. The...

Comments and Discussion (2003)

Gourinchas, Pierre-Olivier.

Brookings Papers on Economic Activity - 2002, 2

On the Benefits of Capital Account Liberalization for Emerging Economies (2002)

Pierre-olivier Gourinchas, Olivier Jeanne

Standard theoretical arguments tell us that countries with relatively little capital benefit from financial integration as foreign capital flows in and speeds up the process of convergence. We show...

Consumption over the life cycle (1999)

Pierre-olivier Gourinchas, Jonathan A. Parker, Chris Carroll, Charles Fleischman, Franco Modigliani, Steve Pischke, ...

support from the Sloan Foundation. This paper employs a synthetic cohort technique and Consumer Expenditure Survey data to construct average age-profiles of consumption and income over the working...

Essays on exchange rates, and consumption (1996)

Gourinchas, Pierre-Olivier

Thesis (Ph. D.)--Massachusetts Institute of Technology, Dept. of Economics, 1996.

Essays on exchange rates, and consumption /--by Pierre-Olivier Gourinchas. (1996)

Gourinchas, Pierre-Olivier.

Thesis (Ph. D.)--Massachusetts Institute of Technology, Dept. of Economics, 1996.

Essays on exchange rates, and consumption (1996)

Gourinchas, Pierre-Olivier

Thesis (Ph. D.)--Massachusetts Institute of Technology, Dept. of Economics, 1996.

An Equilibrium Model of "Global Imbalances" and Low Interest Rates

Ricardo J. Caballero, Emmanuel Farhi, Pierre-Olivier Gourinchas

Three of the most important recent facts in global macroeconomics -- the sustained rise in the US current account deficit, the stubborn decline in long run real rates, and the rise in the share of US...

Capital Flows to Developing Countries: the Allocation Puzzle

Olivier Jeanne, Pierre-Olivier Gourinchas

capital flows, emerging countries, Feldstein Horioka, neoclassical growth model, Lucas puzzle

International financial adjustment

Pierre-Olivier Gourinchas, Hélène Rey

The paper proposes a unified framework to study the dynamics of net foreign assets and exchange rate movements. We show that deteriorations in a country's net exports or net foreign asset position...

International Financial Adjustment

Pierre-Olivier Gourinchas, Helene Rey

The paper proposes a unified framework to study the dynamics of net foreign assets and exchange rate movements. We show that deteriorations in a country's net exports or net foreign asset position...

The Research Agenda: Pierre-Olivier Gourinchas on Global Imbalances and Financial Factors

Pierre-Olivier Gourinchas

Pierre-Olivier Gourinchas is Assistant Professor of Economics at the University of California, Berkeley. His main lines of research are on precautionary savings and international financial...

The Elusive Gains from International Financial Integration

Pierre-Olivier Gourinchas, Olivier Jeanne

Standard theoretical arguments tell us that countries with relatively little capital benefit from financial integration as foreign capital flows in and speeds up the process of income convergence. We...

From World Banker to World Venture Capitalist: US External Adjustment and The Exorbitant Privilege

Gourinchas, Pierre-Olivier, Rey, Hélène

Does the centre country of the International Monetary System enjoy an 'exorbitant privilege' that significantly weakens its external constraint as has been asserted in some European quarters? Using a...

From World Banker to World Venture Capitalist: US External Adjustment and the Exorbitant Privilege

Pierre-Olivier Gourinchas, Hélène Rey

Does the center country of the International Monetary System enjoy an "exorbitant privilege" that significantly weakens its external constraint as has been asserted in some European quarters? Using a...

Capital Flows to Developing Countries: The Allocation Puzzle

Gourinchas, Pierre-Olivier, Jeanne, Olivier

According to the consensus view in growth and development economics, cross country differences in per-capita income largely reflect differences in countries' total factor productivity. We argue that...

An Equilibrium Model of 'Global Imbalances' and Low Interest Rates

Caballero, Ricardo, Farhi, Emmanuel, Gourinchas, Pierre-Olivier

Three of the most important recent facts in global macroeconomics - the sustained rise in the US current account deficit, the stubborn decline in long run real rates, and the rise in the share of US...

An equilibrum model of "global imbalances" and low interest rates

Ricardo J Caballero, Emmanuel Farhi, Pierre-Olivier Gourinchas

Three of the most important recent facts in global macroeconomics - the sustained rise in the US current account deficit, the stubborn decline in long run real rates, and the rise in the share of US...

An Equilibrium Model of "Global Imbalances" and Low Interest Rates

Ricardo J. Caballero, Emmanuel Farhi, Pierre-Olivier Gourinchas

The sustained rise in US current account deficits, the stubborn decline in long-run real rates, and the rise in US assets in global portfolios appear as anomalies from the perspective of conventional...

The Elusive Gains from International Financial Integration

PIERRE-OLIVIER GOURINCHAS, OLIVIER JEANNE

Standard theoretical arguments tell us that countries with relatively little capital benefit from financial integration as foreign capital flows in and speeds up the process of convergence. We show...

Precautionary Savings, LifeCycle and Macroeconomics

Pierre-Olivier Gourinchas

This paper explores the implications of precautionary saving and life cycle behavior for business cycle fluctuations. Existing heterogenous agent models of the business cycle, with labor income...

Consumption Over the Life Cycle

Pierre-Olivier Gourinchas, Jonathan A. Parker

This paper estimates a structural model of optimal life-cycle consumption expenditures in the presence of realistic labor income uncertainty. We employ synthetic cohort techniques and Consumer...

An Equilibrium Model of "Global Imbalances" and Low Interest Rates

Ricardo Caballero, Emmanuel Farhi, Pierre-Olivier Gourinchas

Three of the most important recent facts in global macroeconomics -- the sustained rise in the US current account deficit, the stubborn decline in long run real rates, and the rise in the share of US...

International Financial Adjustment

Pierre-Olivier Gourinchas, Hélène Rey

The paper proposes a unified framework to study the dynamics of net foreign assets and exchange rate movements. We show that deteriorations in a country's net exports or net foreign asset position...

An Equilibrium Model of Global Imbalances and Low Interest Rates

Ricardo J. Caballero, Emmanuel Farhi, Pierre-Olivier Gourinchas

Three of the most important recent facts in global macroeconomics — the sustained rise in the US current account deficit, the stubborn decline in long run real rates, and the rise in the share...

International Financial Adjustment

Pierre-Olivier Gourinchas, Hélène Rey

The paper proposes a unified framework to study the dynamics of net foreign assets and exchange rate movements. We show that deteriorations in a country's net exports or net foreign asset position...

Consumption Over the Life-Cycle

Gourinchas, Pierre-Olivier, Parker, Jonathan A

This paper employs cohort technique and Consumer Expenditure Survey data to construct average age-profiles of consumption and income over the working lives of typical households across different...

The Empirical Importance of Precautionary Saving

Gourinchas, Pierre-Olivier, Parker, Jonathan A

One of the basic motives for saving is the accumulation of wealth to insure future welfare. Both introspection and extant research on consumption insurance find that people face substantial risks...

Lending Booms: Latin America and the World

Gourinchas, Pierre-Olivier, Landerretche, Oscar, Valdés, Rodrigo

Recent theories on the origins of crises put lending booms at the root of financial collapses. Yet lending booms may be a natural consequence of economic development and fluctuations. So, are lending...

Exchange Rate Dynamics, Learning and Misperception

Gourinchas, Pierre-Olivier, Tornell, Aaron

We propose a new explanation for the forward-premium and the delayed-overshooting puzzles. Both puzzles arise from a systematic under-reaction of short-term interest rate forecasts to current...

The Elusive Gains from International Financial Integration

Gourinchas, Pierre-Olivier, Jeanne, Olivier

Standard theoretical arguments tell us that countries with relatively little capital benefit from financial integration as foreign capital flows in and speeds up the process of convergence. We show...

International Financial Adjustment

Gourinchas, Pierre-Olivier, Rey, Hélène

The Paper proposes a unified framework to study the dynamics of net foreign assets and exchange rate movements. We show that deteriorations in a country’s net exports or net foreign asset position...

Exchange Rate Dynamics and Learning

Pierre-Olivier Gourinchas, Aaron Tornell

Interest rate expectations are essential for exchange rate determination. Using a unique Survey data set on interest rate forecasts from 1986 to 1995 for G7 countries, we find that interest rate...

Exchange Rates and Jobs: What Do We Learn from Job Flows?

Pierre-Olivier Gourinchas

Currency fluctuations provide a substantial source of movements in relative prices that is largely exogenous to the firm. This paper evaluates empirically and theoretically the importance of exchange...

Consumption Over the Life Cycle

Pierre-Olivier Gourinchas, Jonathan A. Parker

This paper employs a synthetic cohort technique and Consumer Expenditure Survey data to construct average age-profiles of consumption and income over the working lives of typical households across...

Social Security and Inequality over the Life Cycle

Angus Deaton, Pierre-Olivier Gourinchas, Christina Paxson

This paper examines the consequences of social security reform for the inequality of consumption across individuals. The idea is that inequality is at least in part the result of individual risk in...

The Empirical Importance of Precautionary Saving

Pierre-Olivier Gourinchas, Jonathan A. Parker

One of the basic motives for saving is the accumulation of wealth to insure future welfare. Both introspection and extant research on consumption insurance find that people face substantial risks...

Lending Booms: Latin America and the World

Pierre-Olivier Gourinchas, Rodrigo Valdes, Oscar Landerretche

Recent theories of crisis put lending booms at the root of financial collapses. Yet lending booms may be a natural consequence of economic development and fluctuations. So are lending booms...

Exchange Rate Dynamics, Learning and Misperception

Pierre-Olivier Gourinchas, Aaron Tornell

We propose a new explanation for the forward-premium and the delayed-overshooting puzzles. Both puzzles arise from a systematic under-reaction of short-term interest rate forecasts to current...

The Elusive Gains from International Financial Integration

Pierre-Olivier Gourinchas, Olivier Jeanne

Standard theoretical arguments tell us that countries with relatively little capital benefit from financial integration as foreign capital flows in and speeds up the process of convergence. We show...

Capital Flows to Developing Countries: The Allocation Puzzle

Pierre-Olivier Gourinchas, Olivier Jeanne

According to the consensus view in growth and development economics, cross country differences in per-capita income largely reflect differences in countries' total factor productivity. We argue that...

International Financial Adjustment

Pierre-Olivier Gourinchas, Hélène Rey

We explore the implications of a country’s external constraint for the dynamics of net foreign assets, returns, and exchange rates. Deteriorations in external accounts imply future trade surpluses...

When bonds matter: home bias in goods and assets

Nicolas Coeurdacier, Pierre-Olivier Gourinchas

Recent models of international equity portfolios exhibit two potential weaknesses: 1) the structure of equilibrium equity portfolios is determined by the correlation of equity returns with real...

Financial Crash, Commodity Prices and Global Imbalances

Ricardo J. Caballero, Emmanuel Farhi, Pierre-Olivier Gourinchas

In this paper we argue that the persistent global imbalances, the subprime crisis, and the volatile oil and asset prices that followed it, are tightly interconnected. They all stem from a global...

Financial Crash, Commodity Prices and Global Imbalances

Caballero, Ricardo, Farhi, Emmanuel, Gourinchas, Pierre-Olivier

In this paper we argue that the persistent global imbalances, the subprime crisis, and the volatile oil and asset prices that followed it, are tightly interconnected. They all stem from a global...

International Financial Adjustment

Pierre-Olivier Gourinchas, Hélène Rey

We explore the implications of a country's external constraint for the dynamics of net foreign assets, returns, and exchange rates. Deteriorations in external accounts imply future trade surpluses...

Estimating the Border Effect: Some New Evidence

Gopinath, Gita, Gourinchas, Pierre-Olivier, Hsieh, Chang-Tai, Li, Nicholas

To what extent do national borders and national currencies impose costs that segment markets across countries? To answer this question we use a dataset with product level retail prices and wholesale...

Estimating the Border Effect: Some New Evidence

Gita Gopinath, Pierre-Olivier Gourinchas, Chang-Tai Hsieh, Nicholas Li

To what extent do national borders and national currencies impose costs that segment markets across countries? To answer this question we use a dataset with product level retail prices and wholesale...

Estimating the border effect: some new evidence

Gita Gopinath, Pierre-Olivier Gourinchas, Chang-Tai Hsieh, Nicholas Li

To what extent do national borders and national currencies impose costs that segment markets across countries? To answer this question the authors use a dataset with product-level retail prices and...