1. From: Rethinking the Effects of Financial Globalization *
Sources:Reinhart and Rogoff (2009) , who combine own data with Kaminsky and Reinhart (1999) , Bordo et al. (2001) , Obstfeld and Taylor (2004) , and Caprio et al. (2005) . The index of capital mobility is the subjective index from Obstfeld and Taylor (2004) .
From: Rethinking the Effects of Financial Globalization *
Q J Econ. 2016;131(3): doi: /qje/qjw010
Q J Econ | © The Author(s) Published by Oxford University Press, on behalf of President and Fellows of Harvard College. This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License ( ), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited. For commercial re-use, please contact

2. From: Rethinking the Effects of Financial Globalization *
The solid line shows the law of motion of the capital stock in autarky, for parameters {α=0.3,β=0.9,ρ=0.1,ω=0.2,A=1,δ=0.6,ϵ=0.8,π=0.7} . All figures in the article are based on variations of {δ,ϵ,π} while sharing the same values of {α,β,ρ,ω,A} .
From: Rethinking the Effects of Financial Globalization *
Q J Econ. 2016;131(3): doi: /qje/qjw010
Q J Econ | © The Author(s) Published by Oxford University Press, on behalf of President and Fellows of Harvard College. This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License ( ), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited. For commercial re-use, please contact

3. From: Rethinking the Effects of Financial Globalization *
The dashed line shows the law of motion of the capital stock in autarky and the solid line shows the law of motion in the optimistic equilibrium in the integrated economy. The left panel is for parameters {δ=0.6,ϵ=0.8,π=0.7} , and the right panel is for parameters {δ=0.6,ϵ=0.4,π=0.7} .
From: Rethinking the Effects of Financial Globalization *
Q J Econ. 2016;131(3): doi: /qje/qjw010
Q J Econ | © The Author(s) Published by Oxford University Press, on behalf of President and Fellows of Harvard College. This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License ( ), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited. For commercial re-use, please contact

4. From: Rethinking the Effects of Financial Globalization *
The dashed line shows the law of motion of the capital stock in autarky and the solid line shows the law of motion in the pessimistic equilibrium in the integrated economy. The left panel is for parameters {δ=0.6,ϵ=0.8,π=0.7} , and the right panel is for parameters {δ=0.6,ϵ=0.4,π=0.7} .
From: Rethinking the Effects of Financial Globalization *
Q J Econ. 2016;131(3): doi: /qje/qjw010
Q J Econ | © The Author(s) Published by Oxford University Press, on behalf of President and Fellows of Harvard College. This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License ( ), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited. For commercial re-use, please contact

5. From: Rethinking the Effects of Financial Globalization *
The dashed line shows the law of motion of the capital stock in autarky and the solid lines show the optimistic (upper line) and pessimistic (bottom line) equilibria in the integrated economy. The top left panel is for parameters {δ=0.8,ϵ=0.8,π=0.8} , the top right panel is for parameters {δ=0.8,ϵ=0.8,π=0.3} , the bottom left panel is for parameters {δ=0.5,ϵ=0.8,π=0.8} , and the bottom right panel is for parameters {δ=0.5,ϵ=0.6,π=0.3} .
From: Rethinking the Effects of Financial Globalization *
Q J Econ. 2016;131(3): doi: /qje/qjw010
Q J Econ | © The Author(s) Published by Oxford University Press, on behalf of President and Fellows of Harvard College. This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License ( ), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited. For commercial re-use, please contact

6. From: Rethinking the Effects of Financial Globalization *
The dashed line shows the law of motion of the capital stock in autarky and the solid line shows the law of motion in the pessimistic (and unique) equilibrium in the integrated economy. The top panel is for parameters {δ=0.6,ϵ=1,π=1} , the middle panel is for parameters {δ=0.6,ϵ=1,π=0.5} , and the bottom panel is for parameters {δ=0.6,ϵ=1,π=0} .
From: Rethinking the Effects of Financial Globalization *
Q J Econ. 2016;131(3): doi: /qje/qjw010
Q J Econ | © The Author(s) Published by Oxford University Press, on behalf of President and Fellows of Harvard College. This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License ( ), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited. For commercial re-use, please contact

7. From: Rethinking the Effects of Financial Globalization *
Financial integration takes place at t = 2, in an economy characterized by parameters {δ=0.6,ϵ=1,π=0.5} . The laws of motion of the capital stock are those in the middle panel of Figure VI .
From: Rethinking the Effects of Financial Globalization *
Q J Econ. 2016;131(3): doi: /qje/qjw010
Q J Econ | © The Author(s) Published by Oxford University Press, on behalf of President and Fellows of Harvard College. This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License ( ), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited. For commercial re-use, please contact

8. From: Rethinking the Effects of Financial Globalization *
The dashed line shows the law of motion of the capital stock in autarky and the solid lines show the optimistic (upper line) and pessimistic (bottom line) equilibria in the integrated economy. The top panel is for parameters {δ=0.9,ϵ=0.2,π=0.5} , the middle panel is for parameters {δ=0.45,ϵ=0.2,π=0.5} , and the bottom panel is for parameters {δ=0,ϵ=0.2,π=0.5} .
From: Rethinking the Effects of Financial Globalization *
Q J Econ. 2016;131(3): doi: /qje/qjw010
Q J Econ | © The Author(s) Published by Oxford University Press, on behalf of President and Fellows of Harvard College. This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License ( ), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited. For commercial re-use, please contact

9. From: Rethinking the Effects of Financial Globalization *
Financial integration takes place at t = 2, in an economy characterized by parameters {δ=0.8,ϵ=0.8,π=0.3} and Pr[P|O]=0.15 and Pr[O|P]=0.5 . Under these parameters k0<k^<k¯<k∞P .
From: Rethinking the Effects of Financial Globalization *
Q J Econ. 2016;131(3): doi: /qje/qjw010
Q J Econ | © The Author(s) Published by Oxford University Press, on behalf of President and Fellows of Harvard College. This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License ( ), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited. For commercial re-use, please contact