Policy uncertainty spillovers to emerging markets: Evidence from capital flows

Dennis Reinhardt, Cameron McLoughlin, Ludovic Gauvin 05 November 2014

a

A

In the wake of the global financial crisis of 2007–2008, advanced economies experienced heightened levels of uncertainty in macroeconomic policymaking. Against this backdrop, policymakers debated the domestic and global spillover implications of advanced-country policy uncertainty (e.g. IMF 2013). At the same time, the potential for monetary policy settings in advanced countries to spill over to emerging market economies (EMEs) via capital flows was hotly contested in both academic and policymaker circles (e.g. Fratzscher et al. 2013).

a

A

Topics:  International finance Macroeconomic policy Monetary policy

Tags:  capital flows, Capital inflows, emerging markets, policy uncertainty, spillovers, global crisis, monetary policy, macroeconomic policy, risk aversion, home bias

How to loosen the banks-sovereign nexus

Paolo Angelini, Giuseppe Grande 08 April 2014

a

A

Sovereign debtors and their national banking systems are closely linked through a range of direct and indirect channels. These include banks’ claims on sovereigns, semi-automatic links between sovereign and bank credit ratings, public backstops, collateral in banks’ operations, and the effects of fiscal distress on the overall economy – and thus the quality of bank loans (CGFS 2011, Bank of Italy 2013a).

a

A

Topics:  EU institutions Financial markets

Tags:  bank regulation, capital requirements, home bias, bank capital

Foreign investors and crises: There is no safe haven for all seasons

Maurizio Michael Habib, Livio Stracca 28 February 2014

a

A

The resilience of the international status of the US dollar remains surprising (Frankel 2013). At the peak of the global financial crisis which started in the US, in particular in the last quarter of 2008, US treasury yields fell and the US dollar appreciated. This has created the impression of a stronger demand for US securities in general. The evidence suggests, however, that non-US residents were instead relatively ‘picky’, fleeing into short-term US Treasury bills but reducing purchases of longer-dated Treasury bonds and shedding other US bonds.

a

A

Topics:  Financial markets Global crisis

Tags:  US, reserve currency, financial crisis, asset pricing, global crisis, risk aversion, home bias, safe haven, portfolio flows

The "Greatest" Carry Trade Ever? Understanding Eurozone Bank Risks

Viral Acharya, Sascha Steffen,

Date Published

Sun, 04/21/2013

a

A

Show in Editors Choice Box?

0

Display Order

0

Topics

International finance

Partners

Vox

URL

www.cepr.org/pubs/dps/DP9432.asp

Vox readers can download CEPR Discussion Paper 9432 for free here.

Journalists are entitled to free DP downloads on request; please contact pressoffice@cepr.org. To learn more about subscribing to CEPR's Discussion Paper Series, please visit the CEPR website.

Home Page

Display Order

0

cepr_featured

0
Tags
Banking crisis, sovereign-debt crisis, risk shifting, regulatory arbitrage, home bias

Events