Advanced Country Monetary Policy Spillovers to Emerging Markets
Sunday, Jan. 5, 2020 10:15 AM - 12:15 PM (PDT)
- Chair: Sebnem Kalemli-Ozcan, University of Maryland
Monetary Policy Transmission and Capital Controls: Micro-Evidence from Colombia
AbstractAn important question in international macroeconomics is to what extent decreasing capital mobility increases monetary policy autonomy. Using loan-level data from Colombia we analyze how the imposition of capital controls has affected the transmission of domestic and foreign monetary policy in a cross-section of banks heterogenous in their exposures to foreign capital flows.
The Shifting Drivers of Global Liquidity
AbstractThe sensitivities of the main global liquidity components, international loan and bond flows, to global factors varied considerably over the past decade. The estimated sensitivity to US monetary policy rose substantially in the immediate aftermath of the Global Financial Crisis, peaked around the time of the 2013 Fed “taper tantrum”, and then reverted towards pre-crisis levels. Conversely, the responsiveness of international bank lending to global risk conditions declined steadily throughout the post-crisis period. We show that the main driver of the fluctuations in the estimated sensitivities to US monetary policy was the degree of convergence among advanced economy monetary policies. Meanwhile, the post-crisis fall in the sensitivity of international bank lending to global risk was mainly driven by increases in the lending shares of better-capitalized banking systems.
US Monetary Policy and International Risk Spillovers
AbstractI investigate how advanced country policies spillover to emerging markets, detailing out the transmission mechanisms.
- F2 - International Factor Movements and International Business
- E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit