The International Financial System shapes how capital and risk are allocated and shared internationally, in particular via cross-border financial flows (equity, debt and direct investments). Our research group studies the drivers and outcomes of international capital flows, both in history and today, drawing on decades or even centuries of newly collected data. We place a particular focus on the role of the state in influencing international capital flows, as well as the rise of China in global financial markets. Specifically, we study the following questions:
- Why do states cooperate financially and assist each other during times of macroeconomic and political crises?
- Should the current global financial architecture be reformed? Relatedly, what is the optimal design of sovereign bailout policies?
- Official international lending: What are the determinants and consequences of state-driven cross-border investments?
- What is the impact of Chinese overseas lending in receiving countries and the international financial system at large?