Arbeitspapier
The global capital flows cycle: Structural drivers and transmission channels
In this paper, we study the effects of structural shocks that influence global risk - the main factor behind a "global capital flows cycle" - and how risk, in turn, is transmitted to capital flows. Our results show that not all the risk shocks driving the global financial cycle have the same effects on capital flows. Changes in global risk caused by pure financial shocks have the largest impact on the global configuration of capital flows, followed by US monetary policy shocks. As regards the transmission of risk to capital flows, we uncover a traditional 'trilemma', as countries more financially open and adopting a strict peg are more sensitive to global risk. This "trilemma" is mainly driven by one category of cross-border flows, "other investment", confirming the importance of cross-border banking loans in the narrative of the global financial cycle.
- ISBN
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978-92-899-3542-5
- Sprache
-
Englisch
- Erschienen in
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Series: ECB Working Paper ; No. 2280
- Klassifikation
-
Wirtschaft
Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems
Monetary Policy
Foreign Exchange
Financial Aspects of Economic Integration
Open Economy Macroeconomics
- Thema
-
Global financial cycle
capital flows
monetary policy
international spillover
global risk
- Ereignis
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Geistige Schöpfung
- (wer)
-
Habib, Maurizio Michael
Venditti, Fabrizio
- Ereignis
-
Veröffentlichung
- (wer)
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European Central Bank (ECB)
- (wo)
-
Frankfurt a. M.
- (wann)
-
2019
- DOI
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doi:10.2866/54331
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Habib, Maurizio Michael
- Venditti, Fabrizio
- European Central Bank (ECB)
Entstanden
- 2019