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International Capital Flows at the Zero Lower Bound Catherine  L.  Mann  

Rosenberg  Professor  of  Global  Finance,     Interna:onal  Business  School,  Brandeis  University   Visi:ng  Scholar  Federal  Reserve  Bank  of  Boston     Global  Interdependence  Center,  Milan  May  2013  

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Bid-Cover at ZLB Lots of bids… But wanted higher interest rate than outcome… except LT !"#$%&'()*+,-&*./*0123)45(136*./*/(,)* )"!!# 7889* 788=* 78@@*

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Foreign Gross Flows at ZLB UST dominate in ZLB regime … no increase in risky assets #!$!!!$!!!"

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Foreign Gross Flows at the ZLB private through financial centers drive trends

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Foreign Net Flows at ZLB UST Official dominate post crisis; some return to risk? Bank flows reflect rolling geography of crisis and risk attitude &#$$$$$%

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Foreign Official Portfolio at ZLB increasing share, lengthening 3-6yr duration  

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Official Portfolio at ZLB Official had wanted higher yield… will they again? &##$

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International Capital Flowsat theZero Lower Bound