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Using firm-level data for 18 major global economies, we find that the exchange rate affects corpo-rate investment through a financial channel: exchange rate depreciation dampens corporate invest-ment through firm leverage and FX debt. These findings are consistent with the predictions of a...
Persistent link: https://www.econbiz.de/10012170561
This paper assesses the financial channel of exchange rate fluctuations for emerging countries and the link to the conventional trade channel. We analyze whether the effective exchange rate affects GDP growth, the domestic credit and the global liquidity measure as the credit in foreign...
Persistent link: https://www.econbiz.de/10012607883
The paper focuses on China's onshore bond market and the drivers of non-resident net portfolio flows into Chinese debt … bond flows into China, static and time-varying models are estimated to explain the importance of various push and pull … factors in the context of China's bond market development. While China-specific pull factors, such as domestic economic growth …
Persistent link: https://www.econbiz.de/10014438781
In light of the recent tit-for-tat trade dispute between China and the US, interest in quantifying the effects of the … China and the US, trade diversion effects are also analyzed. The model-based analysis finds noticeable positive (negative …) impacts of the agreement for the US (China) as well as negative spillover effects for countries not directly affected by the …
Persistent link: https://www.econbiz.de/10012819425
This paper provides a brief overview of China's capital controls, external asset holdings and the real interest rate …, and analyzes the quantitative effects of China's macroeconomic policies between 2000 and 2015, including capital controls …, interest rate policy, exchange rate policy and fiscal policy, on the dynamics of China's trade balance vis-a-vis the United …
Persistent link: https://www.econbiz.de/10014366828
restrictions, while China's could be strengthened. …
Persistent link: https://www.econbiz.de/10013450707
We analyse volatility spillovers between the on- and offshore (CNY and CNH) Renminbi exchange rates towards the US dollar (USD). The volatility impulse response (VIRF) methodology introduced by Hafner and Herwatz (2006) is applied to several shocks between January 2012 and December 2019....
Persistent link: https://www.econbiz.de/10012294928
This study examines the role of the Chinese renminbi (RMB) as an international anchor currency. After China abandoned …'s role reflected China's growing presence in the global economy, even challenging the USD in some of the 155 countries that … RMB's anchor weight in exchange rate policies remains low irrespective of China's global role. Overall, the weight of the …
Persistent link: https://www.econbiz.de/10014519200
Persistent link: https://www.econbiz.de/10010438411
Persistent link: https://www.econbiz.de/10003875824