. In particular, high Northern interest rates are strongly associated with the onset of banking crises in developing …

Regressions of ex-post changes in floating exchange rates on appropriate interest differentials typically imply that … the high interest rate currency tends to appreciate - the `forward discount puzzle'. Using data from the European Monetary …, deviations from uncovered interest parity appear to vary in a way that is dependent upon the exchange rate regime. By using the …

We show that banks' cash flow exposure to interest rate risk, or income gap, plays a crucial role in their lending … behavior following monetary policy shocks. In a first step, we show that the sensitivity of bank profits to interest rates … increases significantly with their income gap, even when banks use interest rate derivatives. In a second step, we show that the …

paper analyzes the role of interest rates and credit in driving house price booms and busts with data spanning 140 years of …-term interest rates unrelated to home economic conditions. We use novel instrumental variable local projection methods to …

volatility of inflation, output and interest rate. We analyze the effect of higher inflation targets and large expectational …