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International Bank Lending Channel of Monetary Policy
By:Silvia Albrizio,Sangyup Choi,Davide Furceri,Chansik Yoon
Published on 2019-11-01 by International Monetary Fund

How does domestic monetary policy in systemic countries spillover to the rest of the world? This paper examines the transmission channel of domestic monetary policy in the cross-border context. We use exogenous shocks to monetary policy in systemically important economies, including the U.S., and local projections to estimate the dynamic effect of monetary policy shocks on bilateral cross-border bank lending. We find robust evidence that an increase in funding costs following an exogenous monetary tightening leads to a statistically and economically significant decline in cross-border bank lending. The effect is weakened during periods of high uncertainty. In contrast, the effect is found to not vary according to the degree of borrower country riskiness, further weakening support for the international portfolio rebalancing channel.

This Book was ranked at 35 by Google Books for keyword Credit channel.

Book ID of International Bank Lending Channel of Monetary Policy's Books is FGjDDwAAQBAJ, Book which was written bySilvia Albrizio,Sangyup Choi,Davide Furceri,Chansik Yoonhave ETAG "Xo7N+1yATEc"

Book which was published by International Monetary Fund since 2019-11-01 have ISBNs, ISBN 13 Code is 9781513519630 and ISBN 10 Code is 1513519638

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Book which have "61 Pages" is Printed at BOOK under CategoryBusiness and Economics

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