Financial globalisation and bank lending: The limits of domestic monetary policy
The effectiveness of monetary policy in dictating banking activities is one of the keys to understanding how efficient monetary policy is in tuning the real economy. This column uses data on Norwegian banks to show that efficiency may be eroded by international financial flows in a small open economy. This raises several challenges for central banks and financial regulatory agencies in such economies.
Link: https://voxeu.org/article/financial-globalisation-bank-lending-and-limits-domestic-monetary-policy