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http://dspace.mediu.edu.my:8181/xmlui/handle/10419/17808| Title: | Macroeconomic Shocks and Foreign Bank Assets |
| Keywords: | F3 F41 ddc:330 international banking macroeconomic shocks Internationale Bank Bilanzstrukturmanagement Konjunktur Schock Zinsdifferenz Kaufkraftparität Neue Makroökonomik offener Volkswirtschaften Schätzung Schätzung Welt |
| Issue Date: | 16-Oct-2013 |
| Publisher: | Kiel Institute for the World Economy (IfW) Kiel |
| Description: | Changes in foreign asset holdings are one channel through which agents adjust to macroeconomic shocks. In this paper, we test whether foreign bank assets change as a result of domestic and foreign macroeconomic shocks. We frame our empirical analysis in a standard new open economy macro model in which financial markets are imperfectly integrated. We test the implications of this model using dynamic panel models for changes in foreign bank assets. We find evidence that nominal interest rate differentials and inflation differentials drive changes in foreign bank assets permanently, while growth rate differentials and exchange rates have only a temporary effect. |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/17808 |
| Other Identifiers: | http://hdl.handle.net/10419/17808 ppn:497689464 |
| Appears in Collections: | EconStor |
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