Economics at your fingertips  

The Dollar, Bank Leverage, and Deviations from Covered Interest Parity

Stefan Avdjiev (), Wenxin Du, Cathérine Koch and Hyun Song Shin
Authors registered in the RePEc Author Service: Catherine Tahmee Casanova ()

American Economic Review: Insights, 2019, vol. 1, issue 2, 193-208

Abstract: We document a triangular relationship in that a stronger dollar goes hand in hand with larger deviations from covered interest parity (CIP) and contractions of cross-border bank lending in dollars. We argue that underpinning the triangle is the role of the dollar as a key barometer of risk-taking capacity in global capital markets.

JEL-codes: F23 F31 G15 G21 (search for similar items in EconPapers)
Date: 2019
Note: DOI: 10.1257/aeri.20180322
References: Add references at CitEc
Citations: View citations in EconPapers (26) Track citations by RSS feed

Downloads: (external link) (application/pdf) (application/zip) (application/pdf) (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
Working Paper: The dollar, bank leverage and the deviation from covered interest parity (2016) Downloads
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:

Ordering information: This journal article can be ordered from

Access Statistics for this article

American Economic Review: Insights is currently edited by Amy Finkelstein

More articles in American Economic Review: Insights from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().

Page updated 2021-08-26
Handle: RePEc:aea:aerins:v:1:y:2019:i:2:p:193-208