Title

Financial Spillovers and Macroprudential Policies

Published In

International Finance and Macroeconomics

Document Type

Citation

Publication Date

3-2020

Abstract

We estimate the impact of the extensity of macroprudential policies on the correlation of the policy interest rates between the center economies (CEs, i.e., the U.S., Japan, and the Euro area), and the peripheral economies (PHs). We find a more extensive implementation of macroprudential policies would lead PHs to (re)gain monetary independence from the CEs when the CEs implement expansionary monetary policy; when PHs run current account deficit; when they hold lower levels of international reserves; when their financial markets are relatively closed; when they are experiencing an increase in net portfolio flows; and when they are experiencing credit expansion.

Description

© 2017 by Joshua Aizenman, Menzie D. Chinn, and Hiro Ito. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source.

Locate the Document

https://doi.org/10.3386/w24105

DOI

10.3386/w24105

Persistent Identifier

https://archives.pdx.edu/ds/psu/33491

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