The Impact of Wealth on Shocks to U.S. Financial Markets
By Francis Warnock (Extracts from IMF working paper)

Partly reflecting structural advantages such a liquidity and strong investor protection, foreigners have built up extremely large positions in U.S. (as well as other dollar-denominated) financial assets. This paper describes the impact on global wealth of an unanticipated shock to U.S. financial markets. For every 10 percent decline in the dollar, U.S. equity markets, and U.S. bond markets, total wealth losses to foreigners could amount to about 5 percentage points of foreign GDP.

1) Impact on Developed Countries

2) Impact on Emerging Markets

3) Impact on Financial Centers and Middle East Oil Exporters