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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Fed vs Foreign Purchases at ZLB

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Bid-Cover at ZLB Lots of bids… But wanted higher interest rate than outcome… except LT

Bidder Allocation at ZLB: Falling share international/rising investment fund

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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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