International Capital Flowsat theZero Lower Bound

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?

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

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