Authors: Marina Azzimonti, and Vincenzo Quadrini Date: September 2018 Abstract: We study how cross-country macroeconomic spillovers caused by sovereign default affect equilibrium bailouts. Because of portfolio diversification, the default of one country causes a macroeconomic contraction also in other countries. This generates a self-interest for these other countries to bailout the defaulting country. A novel[…]
Authors: Björn Richter, Moritz Schularick, and Ilhyock Shim Date: September 2018 Abstract: Central banks increasingly rely on macroprudential measures to manage the financial cycle. However, the effects of such policies on the core objectives of monetary policy to stabilise output and inflation are largely unknown. In this paper, we quantify the effects of changes in[…]
Eugenio Cerutti, Stijn Claessens, and Luc Laeven, 18 September 2018 The Global Crisis was a catalyst for the adoption of macroprudential policies around the world. Using newly updated data, this column examines the adoption of macroprudential policy instruments from 2000 to 2017. Since 2015, advanced economies have on average been using more instruments than emerging[…]
Björn Richter, Moritz Schularick, and Ilhyock Shim 21 September 2018 Central banks have increasingly relied on macroprudential measures to manage the financial cycle, but their effects on the core objectives of monetary policy to stabilise output and inflation are largely unknown. This column shows that the output costs of changes in maximum loan-to-value ratios are[…]
Ester Faia, Sébastien Laffitte, and Gianmarco Ottaviano, 20 September 2018 There is a general consensus that lax monetary policy and banking globalisation were two critical factors behind the Global Crisis. This column explores how banks’ decisions to enter foreign markets impacted their individual and systemic risk. Results from a sample of European banks suggest that[…]
CfP Deadline Date: September 30, 2018 Conference Event: December 13-15, 2018 Event Location: Santiago de Chile, Chile Keynote Speaker(s): Eduardo Schwartz (UCLA Anderson School of Management) Organizer(s): The International Finance and Banking Society (IFABS) Dear Colleagues and Friends, This year marks the beginning of another proud chapter, through the launching of IFABS Latin-America. We are very[…]