Monetary Surprises and Global Financial Flows: A Case Study of Latin America
Eric Fischer
Journal of Emerging Market Finance, 2020, vol. 19, issue 2, 189-225
Abstract:
This article examines the effect of Federal Reserve announcements on global financial flows to Latin America since the Global Financial Crisis. The Federal Reserve announcements are classified using daily measures of expectations from a shadow rate term structure model as easing (unexpected), tightening (unexpected), easing (expected), and tightening (expected). This classification is then used for an event study on daily global financial flows classified by asset class (debt, equity), currency (all currencies, hard currency, local currency), and region (Latin America, Brazil, and Mexico). The results suggest easing (unexpected) and tightening (unexpected) announcements cause debt outflows but have no effect on equity flows to Latin America. Local currency debt flows to Latin America are more sensitive than the hard currency debt flows and Brazil is the country in Latin America that responds most to these announcements. JEL Classification: F32, G14, G15, N26
Keywords: International financial flows; unconventional monetary policy; Latin America; portfolio flows; financial stability; emerging markets (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (2)
Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/0972652719890750 (text/html)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:sae:emffin:v:19:y:2020:i:2:p:189-225
DOI: 10.1177/0972652719890750
Access Statistics for this article
More articles in Journal of Emerging Market Finance from Institute for Financial Management and Research
Bibliographic data for series maintained by SAGE Publications (sagediscovery@sagepub.com).