Financial intermediation, resource allocation, and macroeconomic interdependence

• 成果类型: Article
• 署名作者: Ozhan, Galip Kemal
• 署名单位: University of St Andrews
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2019.07.001
• 发表日期: 2020
• 页码: 265-278
• 关键词: Bank credit; Sectoral allocation; deposits; capital flows; Europe

摘要

During the first decade of the euro, southern countries experienced a boom-bust cycle in bank lending, non-tradable sector growth, and capital inflows. I develop a quantitative, open economy model of banking that is consistent with the banks' behavior in credit allocation and foreign borrowing observed in Spanish data. I illustrate how movements in the frictions of cross-border deposits generate an endogenous asymmetric allocation of bank credit toward non-traded sectors, while producing a persistent and climbing current account deficit. A common central bank's unconventional policies in response to sudden stops are successful at ameliorating the downturn. (c) 2019 Elsevier B.V. All rights reserved.