IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v55y2019i7p1634-1655.html
   My bibliography  Save this article

The Transmission of Financial Shocks on a Global Scale: Some New Empirical Evidence

Author

Listed:
  • Georges-Charbel Beaino
  • Domenico Lombardi
  • Pierre L. Siklos

Abstract

We examine shocks to capital flows from the United States, the Eurozone, and China. A US interest rate rise is contractionary for the United States but produces positive growth elsewhere. Cross-border claims and US interest rate shocks have been more subdued since the global financial crisis, consistent with the portfolio rebalancing hypothesis. Negative claims shocks from the Eurozone have opposite macroeconomic effects than when the same shock hits the United States due to the predominance of bank-intermediated financing in the Eurozone. Real and financial link exists between China and the Eurozone. The United States is relatively immune to shocks from China of the kind investigated here.

Suggested Citation

  • Georges-Charbel Beaino & Domenico Lombardi & Pierre L. Siklos, 2019. "The Transmission of Financial Shocks on a Global Scale: Some New Empirical Evidence," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 55(7), pages 1634-1655, May.
    • Handle: RePEc:mes:emfitr:v:55:y:2019:i:7:p:1634-1655
    DOI: 10.1080/1540496X.2018.1481046
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2018.1481046
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2018.1481046?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Stolbov, Mikhail & Shchepeleva, Maria, 2022. "Modeling global real economic activity: Evidence from variable selection across quantiles," The Journal of Economic Asymmetries, Elsevier, vol. 25(C).
    2. Maria José Sousa & Pere Mercadé Melé & Jesús Molina Gómez, 2020. "Technology, Governance, and a Sustainability Model for Small and Medium-Sized Towns in Europe," Sustainability, MDPI, vol. 12(3), pages 1-15, January.
    3. Kangogo, Moses & Volkov, Vladimir, 2022. "Detecting signed spillovers in global financial markets: A Markov-switching approach," International Review of Financial Analysis, Elsevier, vol. 82(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:55:y:2019:i:7:p:1634-1655. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.