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Dilemma and global financial cycle : evidence from capital account liberalisation episodes

Li, Xiang - 2021 - This version: October 2021

By focusing on the episodes of substantial capital account liberalisation and adopting a new methodology, this paper provides new evidence on the dilemma and global financial cycle theory. I first identify the capital account liberalisation episodes for 95 countries from 1970 to 2016, and then...

Persistent link: https://www.econbiz.de/10012695669

Fiscal policy under the eyes of wary bondholders

Staffa, Ruben Marek; Schweinitz, Gregor von - Leibniz-Institut für Wirtschaftsforschung Halle - 2023

This paper studies the interaction between fiscal policy and bondholders against the backdrop of high sovereign debt levels. For our analysis, we investigate the case of Italy, a country that has dealt with high public debt levels for a long time, using a Bayesian structural VAR model. We extend...

Persistent link: https://www.econbiz.de/10014467071

Sovereign default risk, macroeconomic fluctuations and monetary-fiscal stabilisation

Kirchner, Markus; Rieth, Malte - 2020

This paper examines the role of sovereign default beliefs for macroeconomic fluctuations and stabilisation policy in a small open economy where fiscal solvency is a critical problem. We set up and estimate a DSGE model on Turkish data and show that accounting for sovereign risk significantly...

Persistent link: https://www.econbiz.de/10012316605

U.S. monetary-fiscal regime changes in the presence of endogenous feedback in policy rules

Chang, Yoosoon; Kwak, Boreum - Leibniz-Institut für Wirtschaftsforschung Halle - 2017

We investigate U.S. monetary and fiscal policy regime interactions in a model, where regimes are determined by latent autoregressive policy factors with endogenous feedback. Policy regimes interact strongly: Shocks that switch one policy from active to passive tend to induce the other policy to...

Persistent link: https://www.econbiz.de/10011657240

U.S. monetary and fiscal policy regime changes and their interactions

Chang, Yoosoon; Kwak, Boreum; Qiu, Shi - 2021

We investigate U.S. monetary and fiscal policy interactions in a regime-switching model of monetary and fiscal policy rules where policy mixes are determined by a latent bivariate autoregressive process consisting of monetary and fiscal policy regime factors, each determining a respective policy...

Persistent link: https://www.econbiz.de/10012671665

Monetary-fiscal policy interaction and fiscal inflation: a tale of three countries

Kliem, Martin; Kriwoluzky, Alexander; Sarferaz, Samad - 2015

We study the impact of the interaction between fiscal and monetary policy on the low-frequency relationship between the fiscal stance and inflation using cross-country data from 1965 to 1999. In a first step, we contrast the monetary-fiscal narrative for Germany, the U.S. and Italy with evidence...

Persistent link: https://www.econbiz.de/10011382562

Exploring the economic convergence in the EU new member states by using nonparametric models

Raileanu Szeles, Monica - 2011

This paper analyzes the process of real economic convergence in the New Member States (NMS) being formerly centrally … number of modes of the density distribution, the existence of “convergence clubs” in the distribution and the hypothesis of … convergence at a single point in time. The modality tests (e.g. the ASH-WARPing procedure) and stochastic kernel are nonparametric …

Persistent link: https://www.econbiz.de/10009126554

On the empirics of reserve requirements and economic growth

Crespo Cuaresma, Jesús; Schweinitz, Gregor von; Wendt, … - 2018

Reserve requirements, as a tool of macroprudential policy, have been increasingly employed since the outbreak of the great financial crisis. We conduct an analysis of the effect of reserve requirements in tranquil and crisis times on credit and GDP growth making use of Bayesian model averaging...

Persistent link: https://www.econbiz.de/10011826115

Surges and instability : the maturity shortening channel

Li, Xiang; Su, Dan - 2020

Capital inflow surges destabilise the economy through a maturity shortening mechanism. Our main findings are threefold. First, surges are not just scaled-up normal flows, as they change the shape of the interest rate term structure. Second, corporate debt maturity shortens substantially during...

Persistent link: https://www.econbiz.de/10012316623

Surges and instability : the maturity shortening channel

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 firms tend to make their debt redeemable on demand in order to accommodate the potential liquidity needs of global investors, which makes international borrowing endogenously...

Persistent link: https://www.econbiz.de/10012485498