Financial Intermediation, International Risk Sharing, and Reserve Currencies
研究了金融发展程度不同的国家之间的均衡风险分担，发现金融最发达的国家承担更多风险，其货币在危机时升值从而成为储备货币。
I model the equilibrium risk sharing between countries with varying financial development. The most financially developed country takes greater risks because its financial intermediaries deal with funding problems better. In good times, the more financially developed country consumes more and runs a trade deficit financed by the higher financial income that it earns as compensation for taking greater risk. During global crises, it suffers heavier losses. Its currency emerges as the reserve currency because it appreciates during crises, thus providing a good hedge. I provide evidence that financial net worth plays a crucial role in understanding this asymmetric risk sharing.