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literature however suggests an opposite effect related to regulation, with tighter regulations encouraging foreign lending …
Persistent link: https://www.econbiz.de/10012977751
We analyze the impact of financial crises and monetary policy on the supply of wholesale funding liquidity, and also on the compositional supply effects through cross-border and relationship lending. For empirical identification, we draw on the proprietary bank-to-bank European interbank dataset...
Persistent link: https://www.econbiz.de/10010471858
mechanism. However, an appropriate policy mix of sound public finances, solid financial regulation and targeted macroprudential …
Persistent link: https://www.econbiz.de/10011495568
The Global Financial Safety Net (GFSN) - the institutions and arrangements that provide short-term crisis finance - has turned into a highly complex, uncoordinated system of global, multilateral, and bilateral instruments. The present paper elaborates on a composite index of the GFSN to analyse...
Persistent link: https://www.econbiz.de/10014250306
This paper introduces a new transmission channel of banking crises where sizable cross-border bank claims on foreign countries with high domestic crisis risk enable contagion to the home economy. This asset-side channel opposes traditional views that see banking crises originating from either...
Persistent link: https://www.econbiz.de/10012242495
A growing literature stresses the importance of the “global financial cycle”, a common global movement in asset prices and credit conditions, for emerging market economies (EMEs). It is argued that one of the key drivers of this global cycle is monetary policy in the U.S., which is...
Persistent link: https://www.econbiz.de/10011405101
played a crucial role in transmitting shocks originating in funding markets. Although post-crisis regulation has improved …
Persistent link: https://www.econbiz.de/10012827587
We show that macroprudential regulation can considerably dampen the impact of globalfinancial shocks on emerging … markets. More specifically, a tighter level of regulation reducesthe sensitivity of GDP growth to VIX movements and capital … andliquidity, foreign currency mismatches, and risky forms of credit. We also find that tightermacroprudential regulation allows …
Persistent link: https://www.econbiz.de/10012828057
Using the U.S. Current Population Survey data, this paper compares the distributional impacts of the Pandemic Crisis and those of the Global Financial Crisis in terms of (i) worker characteristics, (ii) job characteristics-'social' (where individuals interact to consume goods), 'teleworkable'...
Persistent link: https://www.econbiz.de/10012828220
This paper studies the interconnectedness of the global financial system and its susceptibilityto shocks. A novel multilayer network framework is applied to link debt and equityexposures across countries. Use of this approach-that examines simultaneously multiplechannels of transmission and...
Persistent link: https://www.econbiz.de/10012913917