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on International Finance |
| By: | Anaya, Pablo; Hachula, Michael; Offermanns, Christian |
| Abstract: | A growing literature stresses the importance of the 'global financial cycle', a common global movement in asset prices and credit conditions, for emerging market economies (EMEs). It is argued that one of the key drivers of this global cycle is monetary policy in the U.S., which is transmitted through international capital flows. In this paper, we add to this discussion and investigate empirically whether U.S. unconventional monetary policy (UMP) between 2008 and 2014 is related to financial conditions in EMEs, and, whether it is transmitted through portfolio flows. We find that a U.S. UMP shock significantly increases portfolio flows from the U.S. to EMEs for almost two quarters. The rise in inflows is accompanied by a persistent increase in several real and financial variables in EMEs. Moreover, we find that, on average, EMEs reacted with an easing of their own monetary policy stance in response to an expansionary U.S. shock. |
| Keywords: | unconventional monetary policy,International capital flows,global financial cycle,global VAR,trilemma vs. dilemma |
| JEL: | C54 E52 F42 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fubsbe:201535&r=ifn |
| By: | Demirguc-Kunt,Asli; Martinez Peria,Maria Soledad; Tressel,Thierry |
| Abstract: | Using a data set covering about 277,000 firms across 79 countries over the period 2004-11, this paper examines the evolution of firms'capital structure during the global financial crisis and its aftermath in 2010-11. The study finds that firm leverage and debt maturity declined in advanced economies and developing countries, even in countries that did not experience a crisis. The deleveraging and maturity reduction were particularly significant for privately held firms, including small and medium enterprises. For small and medium-size enterprises, these effects were larger in countries with less efficient legal systems, weaker information-sharing mechanisms, shallower banking systems, and more restrictions on bank entry. In contrast, there is weaker evidence of a significant decline of leverage and debt maturity among firms listed on a stock exchange, which are typically much larger than other firms and likely benefit from the"spare tire"of easier access to capital market financing. |
| Keywords: | Access to Finance,Economic Theory&Research,Bankruptcy and Resolution of Financial Distress,Debt Markets,Emerging Markets |
| Date: | 2015–12–21 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7522&r=ifn |