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Global Banking Glut and Loan Risk Premium
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In this article, a theoretical model linking global banks and U.S. loan risk premiums was developed to show that the culprit for easy credit conditions in the United States up to 2007 may have been the Global Banking Glut rather than the Global Savings Glut.Citations
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Dilemma not Trilemma: The Global Financial Cycle and Monetary Policy Independence
Hélène Rey,Hélène Rey,Hélène Rey +2 more
TL;DR: In this paper, the authors argue that the global financial cycle is not aligned with countries' specific macroeconomic conditions and propose a convex combination of targeted capital control, macroprudential control, and stricter limit on leverage for all financial intermediaries.
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The Financial Cycle and Macroeconomics: What Have We Learnt?
TL;DR: The authors highlighted the stylised empirical features of the financial cycle, conjectures as to what it may take to model it satisfactorily, and considered its policy implications in the discussion of policy.
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The European Sovereign Debt Crisis
TL;DR: The origin and propagation of the European sovereign debt crisis can be attributed to the flawed original design of the euro as discussed by the authors, and there was an incomplete understanding of the fragility of a monetary union under crisis conditions, especially in the absence of banking union and other European-level buffer mechanisms.
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Capital Flows and the Risk-Taking Channel of Monetary Policy
Valentina Bruno,Hyun Song Shin +1 more
TL;DR: In this article, the authors examined the relationship between low interests maintained by advanced economy central banks and credit booms in emerging economies, and found that expectations of lower short-term rates dampen measured risks and stimulate cross-border banking sector capital flows.
Journal ArticleDOI
Capital flows and the risk-taking channel of monetary policy
Valentina Bruno,Hyun Song Shin +1 more
TL;DR: In this article, the authors examined the relationship between low interests maintained by advanced economy central banks and credit booms in emerging economies and found that expectations of lower short-term rates dampened measured risks and stimulate cross-border banking sector capital flows.
References
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Journal ArticleDOI
Capital Mobility and Stabilization Policy Under Fixed and Flexible Exchange Rates
TL;DR: The theoretical and practical implications of increased mobility of capital have been discussed in this paper, where the authors assume the extreme degree of mobility that prevails when a country cannot maintain an interest rate different from the general level prevailing abroad.
Journal ArticleDOI
The external wealth of nations mark II: Revised and extended estimates of foreign assets and liabilities, 1970–2004
TL;DR: In this paper, the authors construct estimates of external assets and liabilities for 145 countries for 1970-2004, focusing on trends in net and gross external positions, and the composition of international portfolios.
Journal ArticleDOI
Liquidity and Leverage
Tobias Adrian,Hyun Song Shin +1 more
TL;DR: In a financial system in which balance sheets are continuously marked to market, asset price changes appear immediately as changes in net worth, eliciting responses from financial intermediaries who adjust the size of their balance sheets as mentioned in this paper.
Journal ArticleDOI
Credit Spreads and Business Cycle Fluctuations
Simon Gilchrist,Egon Zakrajsek +1 more
TL;DR: In this paper, the authors examined the relationship between credit spreads and economic activity, by constructing a credit spread index based on an extensive data set of prices of outstanding corporate bonds trading in the secondary market and found that the predictive content of credit spreads for economic activity is due primarily to movements in the excess bond premium.
Journal ArticleDOI
Domestic Financial Policies Under Fixed and Under Floating Exchange Rates
TL;DR: In this paper, it is shown that the expansionary effect of a given increase in money supply will always be greater if the country has a floating exchange rate than if it has a fixed rate.
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