International Fiscal financial Spillovers The Effect of Fiscal Shocks on Cross border Bank Lending is popular PDF and ePub book, written by Sangyup Choi in 2019-07-12, it is a fantastic choice for those who relish reading online the Business & Economics genre. Let's immerse ourselves in this engaging Business & Economics book by exploring the summary and details provided below. Remember, International Fiscal financial Spillovers The Effect of Fiscal Shocks on Cross border Bank Lending can be Read Online from any device for your convenience.
International Fiscal financial Spillovers The Effect of Fiscal Shocks on Cross border Bank Lending Book PDF Summary
This paper sheds new light on the degree of international fiscal-financial spillovers by investigating the effect of domestic fiscal policies on cross-border bank lending. By estimating the dynamic response of U.S. cross-border bank lending towards the 45 recipient countries to exogenous domestic fiscal shocks (both measured by spending and revenue) between 1990Q1 and 2012Q4, we find that expansionary domestic fiscal shocks lead to a statistically significant increase in cross-border bank lending. The magnitude of the effect is also economically significant: the effect of 1 percent of GDP increase (decrease) in spending (revenue) is comparable to an exogenous decline in the federal funds rate. We also find that fiscal shocks tend to have larger effects during periods of recessions than expansions in the source country, and that the adverse effect of a fiscal consolidation is larger than the positive effect of the same size of a fiscal expansion. In contrast, we do not find systematic and statistically significant differences in the spillover effects across recipient countries depending on their exchange rate regime, although capital controls seem to play some moderating role. The extension of the analysis to a panel of 16 small open economies confirms the finding from the U.S. economy.
Detail Book of International Fiscal financial Spillovers The Effect of Fiscal Shocks on Cross border Bank Lending PDF
- Author : Sangyup Choi
- Release : 12 July 2019
- Publisher : International Monetary Fund
- ISBN : 9781513507910
- Genre : Business & Economics
- Total Page : 60 pages
- Language : English
- PDF File Size : 12,5 Mb
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