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While the global financial crisis was centered in the United States, it led to a surprising appreciation in the dollar, suggesting global dollar illiquidity. In response, the Federal Reserve partnered with other central banks to inject dollars into the international financial system. Empirical...
Persistent link: https://www.econbiz.de/10013121027
The COVID-19 pandemic spawned a global liquidity crisis in March 2020. The global liquidity crisis was alleviated by … leading tool to manage international liquidity crises. The swap network can be viewed as a step in the direction of a global …
Persistent link: https://www.econbiz.de/10013237575
The relatively infrequent nature of major credit distress events makes an historical approach particularly useful. Using a combination of historical narrative and econometric techniques, we identify major periods of credit distress from 1875 to 2007, examine the extent to which credit distress...
Persistent link: https://www.econbiz.de/10013150829
finds that common shocks - key crisis events as well as changes to global liquidity and risk - have exerted a large effect …
Persistent link: https://www.econbiz.de/10013121029
allows banks in different regions to smooth local liquidity shocks by borrowing and lending on a world interbank market. We … second-best world, financial integration can increase the welfare benefits of liquidity requirements … show under which conditions financial integration induces banks to reduce their liquidity holdings and to shift their …
Persistent link: https://www.econbiz.de/10012957374
expanding (rather than restricting) capital flows. This involves accumulating reserves when global liquidity is high to buy back …
Persistent link: https://www.econbiz.de/10013406746
Financial Cycle.” One global factor explaining an important share of the variation of risky asset prices around the world …
Persistent link: https://www.econbiz.de/10013011923
Have bank regulatory policies and unconventional monetary policies—and any possible interactions—been a factor behind the recent “deglobalisation” in cross-border bank lending? To test this hypothesis, we use bank-level data from the UK—a country at the heart of the global financial...
Persistent link: https://www.econbiz.de/10012989730
In contrast to earlier recessions, the monetary regimes of many small economies have not changed in the aftermath of the global financial crisis. This is due in part to the fact that many small economies continue to use hard exchange rate fixes, a reasonably durable regime. However, most of the...
Persistent link: https://www.econbiz.de/10013073186
We ask whether recent changes in monetary policy due to the financial crisis will be temporary or permanent. We present evidence from two surveys—one of central bank governors, the other of academic specialists. We find that central banks in crisis countries are more likely to have resorted to...
Persistent link: https://www.econbiz.de/10012981105