Global Collateral and Capital Flows
نویسندگان
چکیده
منابع مشابه
GLOBAL COLLATERAL: How Financial Innovation Drives Capital Flows and Increases Financial Instability
We show that cross-border financial flows arise when countries differ in their abilities to use assets as collateral. Financial integration is a way of sharing scarce collateral. The ability of one country to leverage and tranche assets provides attractive financial contracts to investors in the other country, and general equilibrium effects on prices create opportunities for investors in the f...
متن کاملGLOBAL COLLATERAL: HOW FINANCIAL INNOVATION DRIVES CAPITAL FLOWS AND INCREASES FINANCIAL INSTABILITY By
We show that cross-border financial flows arise when countries differ in their abilities to use assets as collateral. Financial integration is a way of sharing scarce collateral. The ability of one country to leverage and tranche assets provides attractive financial contracts to investors in the other country, and general equilibrium effects on prices create opportunities for investors in the f...
متن کاملGlobal Capital Flows and Financing Constraints
Firms often cite financing constraints as one of their primary obstacles to investment. Global capital flows, by bringing in scarce capital, may ease host-country firms' financing constraints. However, if incoming foreign investors borrow heavily from domestic banks, multinational firms may exacerbate financing constraints by crowding host-country firms out of domestic capital markets. Combinin...
متن کاملCapital Flows and Capital Goods*
Studying the relation between equity market liberalization and imports of capital goods, we examine one channel through which international financial integration can promote growth. For the period 1980-1997, we find that after controlling for other policies and fundamentals, stock market liberalizations are associated with a significant increase in the share of imports of machinery and equipmen...
متن کاملCapital Flows, Cross-Border Banking and Global Liquidity∗
This paper develops a model of global liquidity with international banks as the carriers of liquidity conditions across borders. Global banks raise wholesale funding from financial centers which is deployed globally through centralized portfolio allocation decisions from headquarters. As the shadow value of bank funding is equalized across regions, permissive credit conditions in financial cent...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2019
ISSN: 1556-5068
DOI: 10.2139/ssrn.3342860