The Dollar, Bank Leverage, and Real Economic Activity: An Evolving Relationship

Burcu Erik, Marco Lombardi, Dubravko Mihaljek () and Hyun Song Shin

AEA Papers and Proceedings, 2020, vol. 110, 529-34

Abstract: The interest in how financial conditions affect real economic activity has grown since the great financial crisis (GFC), not least because some of the mechanisms at play in the financial sector may have changed. We shed light on this issue by examining the empirical relationship between global Purchasing Managers' Indices, world trade, and indicators of global financial conditions, with a special focus on the broad dollar index. We show that the influence of the dollar on real economic activity and global trade seems to have increased since the GFC, while that of the VIX has decreased.

JEL-codes: E23 E44 F31 F65 G01 (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
https://www.aeaweb.org/doi/10.1257/pandp.20201097 (application/pdf)
https://doi.org/10.3886/E120763V1 (text/html)
https://www.aeaweb.org/doi/10.1257/pandp.20201097.appx (application/pdf)
https://www.aeaweb.org/doi/10.1257/pandp.20201097.ds (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
Working Paper: The dollar, bank leverage and real economic activity: an evolving relationship (2020)
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:aea:apandp:v:110:y:2020:p:529-34

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/subscribe.html

DOI: 10.1257/pandp.20201097

Access Statistics for this article

AEA Papers and Proceedings is currently edited by William Johnson and Kelly Markel

More articles in AEA Papers and Proceedings from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().