EconPapers    
Economics at your fingertips  
 

International Business Cycle and Financial Intermediation

Tamas Csabafi (), Max Gillman () and Ruthira Naraidoo ()
Additional contact information
Tamas Csabafi: Department of Economics, University of Missouri-St. Louis

No 1015, Working Papers from University of Missouri-St. Louis, Department of Economics

Abstract: The paper extends a standard two-country international real business cycle model to include financial intermediation by banks of loans and government bonds. Taking in household deposits from home and abroad, the loans are produced by the bank in a Cobb-Douglas production approach such that a bank productivity shock can explain financial data moments. 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 provides a sense in which financial retrenchment resulted in the US following the 2008 bank crisis, and how the Euro-area and China reacted. The paper contributes evidence of how the Euro-area has been more Önancially integrated with the US, and China less financially integrated, with the Euro-area becoming more financially integrated after the 2008 crisis, and China becoming less so integrated.

Keywords: international real business cycles; financial intermediation; credit spread; bank productivity; 2008 crisis. (search for similar items in EconPapers)
JEL-codes: E13 E32 E44 F41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ban, nep-bec, nep-dge, nep-eec, nep-mac and nep-opm
Date: 2018-09
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.umsl.edu/econ/Research/WorkingPapers/UMSL_ECON_WP_1015.pdf (application/pdf)

Related works:
Working Paper: International Business Cycle and Financial Intermediation (2018) Downloads
Working Paper: International Business Cycle and Financial Intermediation (2018) Downloads
Working Paper: International Business Cycle and Financial Intermediation (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: https://EconPapers.repec.org/RePEc:msl:workng:1015

Access Statistics for this paper

More papers in Working Papers from University of Missouri-St. Louis, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Erika Cotton ().

 
Page updated 2019-10-16
Handle: RePEc:msl:workng:1015