Li, Xiang; Su, Dan - 2021 - This version: March 12, 2021
Capital inflow surges destabilise the economy through a maturity shortening mechanism. The underlying reason is that … level and macro level, our main findings are threefold. First, corporate debt maturity shortens substantially during surges …, especially for firms with foreign bank relationships. Second, surges changethe shape of the interest rate term structure and lead …