Research by Anusha Chari and her coauthors suggests that the rise of internationally-focused mutual funds with passive investment strategies may exacerbate the "sudden stops" associated with abrupt changes in global investor risk appetite, with adverse impacts on emerging markets. We will discuss the possible implications for global financial stability.
Joining this episode of Financial Statements were:
Senior Fellow, Peterson Institute for International Economics (PIIE)
About This Series
Financial Statements is a biweekly virtual event series hosted by Nicolas Véron that explores changes in the world of finance, encompassing themes of financial services regulation, corporate finance and governance, systemic fragility and crises, and structural changes driving business and policy trends in the financial sector.