International Fiscal-financial Spillovers: The Effect of Fiscal Shocks on Cross-border Bank Lending - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook International Fiscal-financial Spillovers: The Effect of Fiscal Shocks on Cross-border Bank Lending write by Sangyup Choi. This book was released on 2019-07-12. International Fiscal-financial Spillovers: The Effect of Fiscal Shocks on Cross-border Bank Lending available in PDF, EPUB and Kindle. This paper sheds new light on the degree of international fiscal-financial spillovers by investigating the effect of domestic fiscal policies on cross-border bank lending. By estimating the dynamic response of U.S. cross-border bank lending towards the 45 recipient countries to exogenous domestic fiscal shocks (both measured by spending and revenue) between 1990Q1 and 2012Q4, we find that expansionary domestic fiscal shocks lead to a statistically significant increase in cross-border bank lending. The magnitude of the effect is also economically significant: the effect of 1 percent of GDP increase (decrease) in spending (revenue) is comparable to an exogenous decline in the federal funds rate. We also find that fiscal shocks tend to have larger effects during periods of recessions than expansions in the source country, and that the adverse effect of a fiscal consolidation is larger than the positive effect of the same size of a fiscal expansion. In contrast, we do not find systematic and statistically significant differences in the spillover effects across recipient countries depending on their exchange rate regime, although capital controls seem to play some moderating role. The extension of the analysis to a panel of 16 small open economies confirms the finding from the U.S. economy.
Cross-Border Transmission of Fiscal Shocks: The Role of Monetary Conditions
Cross-Border Transmission of Fiscal Shocks: The Role of Monetary Conditions - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Cross-Border Transmission of Fiscal Shocks: The Role of Monetary Conditions write by Patrick Blagrave. This book was released on 2018-05-09. Cross-Border Transmission of Fiscal Shocks: The Role of Monetary Conditions available in PDF, EPUB and Kindle. Fiscal stimulus was widely advocated during the global crisis, a period characterized by monetary policy constrained by the effective lower bound (ELB) in many countries, in part because of expected positive spillovers. Standard New Keynesian models predict the cross-border transmission of fiscal shocks is stronger when monetary policy is constrained in recipients. However, the empirical evidence is scarce. This paper bridges this gap by looking at the impact of fiscal shocks in systemic (source) economies on output and demand components in a large group of (recipient) countries, under different monetary policy conditions. Empirical results are compared to simulations with a state-of-the-art estimated open-economy New Keynesian model. Our results corroborate model predictions, finding larger spillovers when recipients are at the ELB, driven by stronger responses of investment and consumption relative to normal times
Global Banks and International Shock Transmission
Global Banks and International Shock Transmission - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Global Banks and International Shock Transmission write by Nicola Cetorelli. This book was released on 2010-11. Global Banks and International Shock Transmission available in PDF, EPUB and Kindle. Global banks played a significant role in transmitting the 2007-09 financial crisis to emerging-market (EM) economies. The authors examine adverse liquidity shocks on main developed-country banking systems and their relationships to EM across Europe, Asia, and Latin Amer., isolating loan supply from loan demand effects. Loan supply in EM across Europe, Asia, and Latin Amer. was affected significantly through three separate channels: (1) a contraction in direct, cross-border lending by foreign banks; (2) a contraction in local lending by foreign banks¿ affiliates in EM; and (3) a contraction in loan supply by domestic banks, resulting from the funding shock to their balance sheets induced by the decline in interbank, cross-border lending. Charts and tables.
Shock Transmission Through Cross-border Bank Lending
Shock Transmission Through Cross-border Bank Lending - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Shock Transmission Through Cross-border Bank Lending write by Galina Hale. This book was released on 2019. Shock Transmission Through Cross-border Bank Lending available in PDF, EPUB and Kindle.
Financial Exposure and the International Transmission of Financial Shocks
Financial Exposure and the International Transmission of Financial Shocks - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Financial Exposure and the International Transmission of Financial Shocks write by Güneş Kamber. This book was released on 2013. Financial Exposure and the International Transmission of Financial Shocks available in PDF, EPUB and Kindle.
