|Buch, Claudia M.; Carstensen, Kai; Schertler, Andrea (2010): Macroeconomic shocks and banks’ foreign assets. In: Journal of Money, Credit and Banking, Vol. 42, No. 1: pp. 171-188|
Recent developments in international financial markets have highlighted the role of banks in the transmission of shocks across borders. We employ dynamic panel methods for a sample of OECD countries to analyze whether banks’ foreign assets react to macroeconomic shocks at home and abroad. We find that banks reduce their foreign assets in response to a relative increase in domestic interest rates, and they increase their foreign assets when the growth rate of world energy prices rises. The responses are characterized by a temporal overshooting and a dynamic adjustment process that extends over several quarters.
Economics > Chairs > CESifo-Professorship for Business Cycle Analysis and Surveys (closed)
|Subjects:||300 Social sciences > 330 Economics|
|Deposited On:||15. Apr 2014 08:55|
|Last Modified:||29. Apr 2016 09:17|