Bond finance, bank credit, and aggregate fluctuations in an open economy

• 成果类型: Article
• 署名作者: Chang, Roberto; Fernandez, Andres; Gulan, Adam
• 署名单位: Rutgers University System; Rutgers University New Brunswick; National Bureau of Economic Research; Bank of Finland
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2016.10.009
• 发表日期: 2017
• 页码: 90-109
• 关键词: emerging markets; Corporate debt; bonds; Bank credit

摘要

Corporate sectors in emerging markets have noticeably increased their reliance on foreign financing, presumably reflecting low global interest rates. The evidence also shows a rebalancing from bank loans towards bonds. To study these developments, we develop a dynamic open economy model where these modes of finance are determined endogenously. The model replicates the stylized facts following a drop in world interest rates; in particular, rebalancing towards bonds occurs because bank credit becomes relatively more expensive, reflecting the scarcity of bank equity. More generally, the model is suitable for studying interactions between modes of finance and the macroeconomy. (C) 2016 Elsevier B.V. All rights reserved.