experiences a sudden stop of capital inflows. The model features credit frictions, debt denominated in foreign currency, imported … leveraged firms. The sudden stop is modeled as a change in the perceptions of foreign lenders that brings about an increase in … the cost of borrowing. I show that the higher the elasticity of foreign demand, the lower the contraction in output …

. Their analysis has three main findings. First, during periods of active TAF borrowing, foreign affiliates of parent banks … with high US dollar funding needs reduced their foreign assets by less. They identify those parents based on their pre …-crisis exposure to the US asset-backed commercial paper (ABCP) market. Second, foreign affiliates in financial centers also shrank …

under stress. In this paper I use the TAF micro-level loan data and find that about 60 percent of TAF loans went to foreign … that foreign - in particular, European - banks currently play in the U.S. financial system and the resultant currency … mismatch in their balance sheets. The data suggest that foreign banks had to borrow from the Federal Reserve Bank to meet their …

under stress. In this paper I use the TAF micro-level loan data and find that about 60 percent of TAF loans went to foreign … that foreign - in particular, European - banks currently play in the U.S. financial system and the resultant currency … mismatch in their balance sheets. The data suggest that foreign banks had to borrow from the Federal Reserve Bank to meet their …