Country Size, Currency Unions, and International Asset Returns
研究发现，大国发行的债券因能对冲影响更大范围经济的冲击而更昂贵，经济规模差异解释了货币回报的大部分横截面变化，货币联盟的引入会降低参与国的利率。
ABSTRACT Differences in real interest rates across developed economies are puzzlingly large and persistent. I propose a simple explanation: bonds issued in the currencies of larger economies are expensive because they insure against shocks that affect a larger fraction of the world economy. I show that, indeed, differences in the size of economies explain a large fraction of the cross‐sectional variation in currency returns. The data also support additional implications of the model: the introduction of a currency union lowers interest rates in participating countries, and stocks in the nontraded sector of larger economies pay lower expected returns.