CIP Deviations, the Dollar, and Frictions in International Capital Markets

This paper has been prepared for the Handbook of International Economics, Volume V, edited by Gita Gopinath, Elhanan Helpman and Kenneth Rogoff. We thank Angus Lewis and Ritt Keerati for outstanding research assistance. We are grateful to Gita Gopinath, Arvind Krishnamurthy, Matteo Maggiori, Brent Neiman, Ken Rogoff, Adrien Verdelhan, and Pierre Yared for comments. All errors are our own. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.