Barajas, Adolfo; Deghi, Andrea; Raddatz, Claudio E.; … - 2020
Leading up to the global financial crisis, US dollar activity by global banks headquartered outside the United States … banking systems' resilience, US dollar funding remains a global vulnerability, as evidenced by strains that reemerged in March … 2020 in the midst of the COVID-19 crisis. We show that shocks to US dollar funding costs lead to financial stress in the …