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
978-92-899-3542-5
Sprache
Englisch

Erschienen in
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
Geistige Schöpfung
(wer)
Habib, Maurizio Michael
Venditti, Fabrizio
Ereignis
Veröffentlichung
(wer)
European Central Bank (ECB)
(wo)
Frankfurt a. M.
(wann)
2019

DOI
doi:10.2866/54331
Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Habib, Maurizio Michael
  • Venditti, Fabrizio
  • European Central Bank (ECB)

Entstanden

  • 2019

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