International Business Cycle and Financial Intermediation

Max Gillman, Tamas Csabafi and Ruthira Naraidoo

No 2018_7, CEU Working Papers from Department of Economics, Central European University

Abstract: The paper extends a standard two-country international real business cycle model to include financial intermediation by banks of loans and government bonds. The paper contributes an explanation for both the US relative to the Euro-area, and the US relative to China, of cross-country correlations of loan rates, deposit rates, and the loan premia. It shows a type of financial retrenchment for the US relative to both Europe and China following a negative bank productivity shock, such as during the 2008 crisis. After 2008, results suggest the Euro-area has been more financially integrated with the US, and China less financially integrated.

Date: 2018-11-07
New Economics Papers: this item is included in nep-bec and nep-dge
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ceu-economics-and-business.github.io/RePEc/pdf/2018_7.pdf Full text (application/pdf)

Related works:
Journal Article: International Business Cycle and Financial Intermediation (2019)
Working Paper: International Business Cycle and Financial Intermediation (2018)
Working Paper: International Business Cycle and Financial Intermediation (2016)
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:ceu:econwp:2018_7

Access Statistics for this paper

More papers in CEU Working Papers from Department of Economics, Central European University Contact information at EDIRC.
Bibliographic data for series maintained by Anita Apor ().