We turn our attention to the role of money for determining nominal magnitudes. Using US data, we find that the … aggregate “nominal output plus and stock market capitalisation” is closely related to the money stock, lending support to one of … keep a very close eye on money supply if it wants to prevent consumer and/or asset price inflation. …

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 …