The financial crisis and U.S. cross-border financial flows

Carol C. Bertaut
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Carol C. Bertaut: https://www.federalreserve.gov/econres/carol-bertaut.htm

Federal Reserve Bulletin, 2009, vol. 95, issue Nov

Abstract: The financial crisis that began in the summer of 2007 caused notable changes in the composition of U.S. cross-border financial flows, especially in the fall of 2008, when the crisis intensified. This article documents three major channels through which financial flows and associated portfolio positions were affected: (1) ?flight to safety? shifts away from riskier securities and toward investments in safe and liquid markets, particularly U.S. Treasury securities; (2) unusual flows through the banking system resulting from a shortage of dollar liquidity abroad and a breakdown in interbank markets; and (3) a pullback from cross-border positions during the crisis.

Keywords: Financial crises; Government securities (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgrb:y:2009:i:nov:n:v.95

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DOI: 10.17016/bulletin.2009.95-11

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