nep-ifn New Economics Papers
on International Finance
Issue of 2021‒02‒08
one paper chosen by
Vimal Balasubramaniam
University of Oxford

  1. Global Liquidity and Household Credit By Berrak Bahadir; Neven Valev

  1. By: Berrak Bahadir (Department of Economics, Florida International University); Neven Valev (Georgia State University)
    Abstract: We show that global liquidity contributes to household credit growth across countries. The effect is particularly strong in countries that are more closely integrated with the world economy as well as in those with a greater level of financial development and more open capital markets. We also find tentative evidence that countries with a greater presence of foreign banks and those with more concentrated banking systems experience a closer link between global liquidity and household credit.
    Keywords: consumer credit, household credit, global liquidity
    JEL: G21 E3
    Date: 2021–01

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