Although recent research shows that the euro has spurred cross-border financial integration, the exact mechanisms … remain unknown. We investigate the underlying channels of the euro’s effect on financial integration using data on bilateral … euro’s impact on financial integration is primarily driven by eliminating the currency risk. Legislative …

controls on foreign exchange (FX) debt inflows and increase of reserve requirements on domestic bank deposits in Colombia … expensive peso lending, especially towards riskier firms. Capital controls tax FX-debt and break the carry-trade. Differently …

. Consistent with a funding-based mechanism, when US monetary policy tightens, non-US nonbanks increase short-term dollar debt …

. Consistent with a funding-based mechanism, when US monetary policy tightens, non-US nonbanks increase short-term dollar debt …

effects, as firms with existing relationships with nonbank lenders increase total debt, investment, and employment relative to …

foreign and domestic bank debt. For identification, we exploit the simultaneous introduction of capital controls on foreign … exchange (FX) debt inflows and an increase of reserve requirements on domestic bank deposits in Colombia during a strong credit … cheap FX funds with more expensive peso lending, especially toward riskier, opaque firms. Capital controls tax FX debt and …

We show that capital controls (CC), by slowing-down firm debt-growth in the boom, improve firm performance during … crises. Exploiting a tax on foreign-currency (FX) debt inflows in Colombia before the Global Financial Crisis (GFC) and … multiple firm-level and loan-level administrative datasets, we find that CC reduce FX-debt inflows. Firms with weaker local …

leverage and sovereign debt exposure. There are associated spillovers on inflation and economic activity—including construction …