CEPR Working Paper: Monetary and Macroprudential Policy Complementarities: evidence from European credit registers

Author(s): Carlo Altavilla, Luc Laeven, José Luis Peydró Date: December 2020 Abstract: We document that there are strong complementarities between monetary policy and macroprudential policy in shaping the evolution of bank credit. We use a unique loan-level dataset comprising multiple credit registers from several European countries and different types of loans, including corporate loans, mortgages[…]

NBER Working Paper: De-Globalisation? Global Value Chains in the Post-COVID-19 Age

Author(s): Pol Antràs Date: November 2020 Abstract: This paper evaluates the extent to which the world economy has entered a phase of de-globalisation, and it offers some speculative thoughts on the future of global value chains in the post-COVID-19 age. Although the growth of international trade flows relative to that of GDP has slowed down[…]

IDB Working Paper: Resilience and Fragility in Global Banking: Impacts on Emerging Economies

Author(s): Marina Conesa, Giulia Lotti and Andrew Powell Date: November 2020 Abstract: Theory suggest s both resilience and fragility in banking networks . This paper finds both, exploiting a new database o f cross -border syndicated lending to developing countries from 1993 to 2017. Shocks propagate via co-lenders driven by central players , but shocks[…]

2020 Finest Autumn Workshop

CfP Deadline Date: October 21, 2020 Conference Event: November 30 – December 1, 2020 Event Location: Essex, UK Keynote speaker(s): Manju Puri (Fuqua School of Business, Duke University) Organizer(s): Financial Intermediation Network of European Studies (FINEST) FINEST workshops are small meetings with in-depth discussions from top scholars of a limited number of high-quality papers with[…]

BoE Working Paper: The interaction between macroprudential policy and monetary policy: overview

Author(s): Matthieu Bussière, Jin Cao, Jakob de Haan, Robert Hills, Simon Lloyd, Baptiste Meunier, Justine Pedrono, Dennis Reinhardt, Sonalika Sinha, Rhiannon Sowerbutts and Konstantin Styrin Date: October 2020 Abstract: This paper presents the main findings of an International Banking Research Network initiative examining the interaction between monetary policy and macroprudential policy in determining international bank[…]

NBER Working Paper: De-globalization: Driven by Global Crises?

Author(s): Assaf Razin Date: October 2020 Abstract: International trade increased rapidly after 1990, fueled by the growth of a complex network of global value chains. Financial globalization gathered force. Trade globalization, however, reversed course since the Global Financial Crisis. The new trend is expected to endure after the Global Pandemic Crisis. There is no indication[…]

NBER Working Paper: Monetary Policy Cooperation/Coordination and Global Financial Crises in Historical Perspective

Author(s): Michael D. Bordo Date: October 2020 Abstract: The COVID-19 pandemic spawned a global liquidity crisis in March 2020. The global liquidity crisis was alleviated by the Federal Reserve and other advanced country central banks cooperating by extending the swap lines they developed in the Global Financial Crisis 2007-2008. Central bank cooperation in 2020 evolved[…]

NBER Working Paper: Global Financial Cycle and Liquidity Management

Author(s): Olivier Jeanne and Damiano Sandri Date: October 2020 Abstract: We use a tractable model to show that emerging markets can protect themselves from the global financial cycle by expanding (rather than restricting) capital flows. This involves accumulating reserves when global liquidity is high to buy back domestic assets at a discount when global financial[…]

CEPR Working Paper: Global Liquidity and Impairment of Local Monetary Policy

Author(s):Salih Fendoglu, Eda Gulsen and José Luis Peydró Date:September 2020 Abstract: We show that global liquidity limits the effectiveness of local monetary policy on credit markets. The mechanism is via a bank carry trade in international markets when local monetary policy tightens. For identification, we exploit global (VIX, U.S. monetary policy) shocks and loan-level data[…]

SSRN Working Paper: Carbon Home Bias of European Investors

Author(s): Martijn Adriaan Boermans and Rients Galema Date:July 2020 Abstract: We study how investor’s persistent preference to invest more in the home market — “home bias” — is affecting investor’s efforts to mitigate risks associated with climate change. When investors have a tendency to tilt their portfolio towards domestic assets, the carbon intensity in the[…]