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[…]
Author(s): Itay Goldstein, Chester S. Spatt and Mao Ye Date: March 2021 Abstract: Big data is revolutionizing the finance industry and has the potential to significantly shape future research in finance. This special issue contains articles following the 2019 NBER/ RFS conference on big data. In this Introduction to the special issue, we define the[…]
Author(s): Alberto Martin, Caterina Mendicino and Alejandro Van der Ghote Date: February 2021 Abstract: The Global Financial Crisis fostered the design and adoption of macroprudential policies throughout the world. This raises important questions for monetary policy. What, if any, is the relationship between monetary and macroprudential policies? In particular, how does the effectiveness of macroprudential[…]
Author(s): Shekhar Hari Kumar and Aakriti Mathur Date: February 2021 Abstract: In this paper, we study transmission of global funding shocks to emerging economies (EMs) from the perspective of interbank markets. Money markets enable banks to engage in risk-sharing against liquidity shocks and are sensitive to global funding conditions. Accordingly, we first show that interbank[…]
Author(s):Mariassunta Giannetti and Yeejin Jang Date:January 2021 Abstract: We show that foreign lenders and low market share lenders extend more credit in comparison to other lenders during lending booms leading to banking crises, but not during other credit expansions. Less established lenders also increase the amount of credit they extend to riskier borrowers, without asking[…]
Author(s):Hans Degryse, Mike Mariathasan and Thi Hien Tang Date:January 2021 Abstract: Global Systemically Important Banks (GSIBs) benefit from implicit government guarantees but face additional capital requirements and oversight. This paper examines the effectiveness of the Financial Stability Board’s recently introduced GSIB-framework and its short-run implications for the real economy, by exploiting the leak of a[…]
Author(s): Barry J. Eichengreen, Balazs Csonto, Asmaa A ElGanainy and Zsoka Koczan Date: January 2021 Abstract: We review the debate on the association of financial globalization with inequality. We show that the within-country distributional impact of capital account liberalization is context specific and that different types of flows have different distributional effects. Their overall impact[…]
Author(s): Sergio de Ferra, Kurt Mitman and Federica Romei Date: January 2021 Abstract: Capital flows from equal to unequal countries. We document this empirical regularity in a large sample of advanced economies. The capital flows are largely driven by private savings. We propose a theory that can rationalize these findings: more unequal countries endogenously develop[…]
