We investigate global factors associated with bank capital flows. We formulate a model of the international banking … system where global banks interact with local banks. The solution highlights the bank leverage cycle as the determinant of … the model is that local currency appreciation is associated with higher leverage of the banking sector, thereby providing …

One aim of post-crisis monetary policy has been to ease credit conditions for borrowers by unlocking bank lending. We … find that bank equity is an important determinant of both the bank's funding cost and its lending growth. In a cross …-country bank-level study, we find that a 1 percentage point increase in the equity-to-total assets ratio is associated with a 4 …

channel, one bank's capital policy affects the equity value and risk of default of other banks. In a model where such … externalities are strong, bank capital takes on the attribute of a public good, where the private equilibrium features excessive … implications of the model with observed bank behavior during the crisis of 2007-09 …

We document the triangular relationship formed by the strength of the US dollar, cross-border bank lending in dollars … contractions of cross-border bank lending in dollars. Differential sensitivity of CIP deviations to the strength of the dollar can … as proxy for the shadow price of bank leverage …

measured risks that are driven by currency appreciation to create a feedback loop. In an empirical investigation using VAR …

some combination of parameters, the unique equilibrium exhibits the observed empirical feature that currency appreciation … go hand-in-hand with capital outflows and currency depreciation …

the ages, various forms of private money have come and gone, giving way to central bank money. The reasons for the … resilience of central bank money are of particular interest given current debates about cryptocurrencies and how far they will … supplant central bank money. We draw lessons from the role of public deposit banks in the 1600s, which quelled the hyper …

FocusThe paper examines the relationship between monetary policy and market prices through the lens of central bank … construct a self-contained quantitative analysis of central bank communication and market prices. It raises important questions … on market signals increases the effectiveness of central bank communication. In their eagerness to correctly anticipate …