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International financial remoteness and macroeconomic volatility

Andrew Kenan Rose () and Mark M Spiegel ()

No 2008-01, Working Paper Series from Federal Reserve Bank of San Francisco

Abstract: This paper shows that proximity to major international financial centers seems to reduce business cycle volatility. In particular, we show that countries that are further from major locations of international financial activity systematically experience more volatile growth rates in both output and consumption, even after accounting for domestic financial depth, political institutions, and other controls. Our results are relatively robust in the sense that more financially remote countries are more volatile, though the results are not always statistically significant. The comparative strength of this finding is in contrast to the more ambiguous evidence found in the literature.

Keywords: Business; cycles (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac and nep-opm
Date: 2007
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Related works:
Journal Article: International financial remoteness and macroeconomic volatility (2009) Downloads
Working Paper: International Financial Remoteness and Macroeconomic Volatility (2008) Downloads
Working Paper: International Financial Remoteness and Macroeconomic Volatility (2007) Downloads
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