Author(s): Silvia Miranda-Agrippino, Tsvetelina Nenova and Helene Rey Date: October 2020 Abstract: We study the international transmission of the monetary policy of the two world’s giants: China and the US. From East to West, the channels of global transmission differ markedly. US monetary policy shocks affect the global economy primarily through their effects on integrated[…]

Author(s): Carol C. Bertaut, Valentina Bruno and Hyun Song Shin Date: April 2021 Abstract: We explore the relationship between portfolio flows and financial conditions by using a unique and comprehensive database of US investor flows into emerging market government bonds. We find that mutual funds display a more procyclical pattern of flows relative to other[…]

Author(s): Alyssa G. Anderson, Wenxin Du and Bernd Schlusche Date: April 2021 Abstract: We show that the role of unsecured, short-term wholesale funding for global banks has changed significantly in the post-financial-crisis regulatory environment. Global banks mainly use such funding to finance liquid, near risk-free arbitrage positions—in particular, the interest on excess reserves arbitrage and[…]