Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
966831 | Journal of Monetary Economics | 2015 | 14 Pages |
Abstract
Adjustments in bank leverage act as the linchpin in the monetary transmission mechanism that works through fluctuations in risk-taking. In the international context, we find evidence of monetary policy spillovers on cross-border bank capital flows and the US dollar exchange rate through the banking sector. A contractionary shock to US monetary policy leads to a decrease in cross-border banking capital flows and a decline in the leverage of international banks. Such a decrease in bank capital flows is associated with an appreciation of the US dollar.
Related Topics
Social Sciences and Humanities
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Economics and Econometrics
Authors
Valentina Bruno, Hyun Song Shin,