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Bond Finance, Bank Credit, and Aggregate Fluctuations in an Open Economy

Chang, Roberto - 2016

bank credit becomes relatively more expensive, reflecting the scarcity of bank equity. More generally, the model is …

Persistent link: https://www.econbiz.de/10012456300

Obstfeld, Maurice; Zhou, Haonan - National Bureau of Economic Research - 2023

The U.S. dollar's nominal effective exchange rate closely tracks global financial conditions, which themselves show a cyclical pattern. Over that cycle, world asset prices, leverage, and capital flows move in concert with global growth, especially influencing the fortunes of emerging and...

Persistent link: https://www.econbiz.de/10014247924

From Carry Trades to Trade Credit : Financial Intermediation by Non-Financial Corporations

Hardy, Bryan; Saffie, Felipe - National Bureau of Economic Research - 2023

borrowing in foreign currency (FX) and lending in domestic currency, largely in the form of trade credit, accumulating currency … risk in the process. We show at a quarterly frequency that the practice of borrowing in FX and extending trade credit is … with expansions in both gross trade credit and sales. Firms that were more active in carry-trades, accumulating currency …

Persistent link: https://www.econbiz.de/10014250200

Do Investor Differences Impact Monetary Policy Spillovers to Emerging Markets?

Faia, Ester; Lewis, Karen K.; Zhou, Haonan - National Bureau of Economic Research - 2024

We re-examine monetary policy spillovers to Emerging Market Economies (EME) in the form of capital flow reversals, using sectoral-level securities holdings data for Euro Area investors. In response to a surprise monetary tightening, active investors such as investment funds re-balance their...

Persistent link: https://www.econbiz.de/10015072927

The Dollar in an Era of International Retrenchment

Chahrour, Ryan; Valchev, Rosen - National Bureau of Economic Research - 2023

Recent trends suggest the world economy may be tending towards an equilibrium with two distinct trading blocs, each internally integrated, but with significant isolation between the blocs. This paper uses a quantitative theory to explore how far this bifurcation would need to go to pose a threat...

Persistent link: https://www.econbiz.de/10014322792

Sticky Discount Rates

Fukui, Masao; Gormsen, Niels; Huber, Kilian - National Bureau of Economic Research - 2024

We show that firms' nominal required returns to capital (i.e., their discount rates) are sticky with respect to expected inflation. Such nominally sticky discount rates imply that increases in expected inflation directly lower firms' real discount rates and thereby raise real investment. We...

Persistent link: https://www.econbiz.de/10014512092

Corporate Discount Rates

Gormsen, Niels; Huber, Kilian - National Bureau of Economic Research - 2023

Standard theory implies that the discount rates used by firms in investment decisions (i.e., their required returns to capital) determine investment and transmit financial shocks to the real economy. However, there exists little evidence on how firms' discount rates change over time and affect...

Persistent link: https://www.econbiz.de/10014322717

Stagflation and Topsy-Turvy Capital Flows

Bengui, Julien; Coulibaly, Louphou - National Bureau of Economic Research - 2022

Are unregulated capital flows excessive during a stagflation episode? We argue that they likely are, owing to a macroeconomic externality operating through the economy's supply side. Inflows raise domestic wages through a wealth effect on labor supply and cause unwelcome upward pressure on...

Persistent link: https://www.econbiz.de/10013462700

The Dependent Economy Model with Both Traded and Non-Traded Capital Goods

Brock, Philip L. - 1993

This paper resolves a long-standing obstacle in the development and use of the dependent economy model with investment. This obstacle derives from the fact that models of the dependent economy with investment have been criticized for arbitrarily assuming that capital is either tradable or...

Persistent link: https://www.econbiz.de/10012474445

Financing the Adoption of Clean Technology

Lanteri, Andrea; Rampini, Adriano A. - National Bureau of Economic Research - 2025

We analyze the adoption of clean technology by heterogeneous firms subject to financing constraints. In the model, capital goods differ in terms of their energy needs and age. In equilibrium, cleaner and newer capital requires more financial resources. Therefore, financial constraints induce an...

Persistent link: https://www.econbiz.de/10015361420