IDEAS home Printed from https://ideas.repec.org/a/spr/jecfin/v48y2024i4d10.1007_s12197-024-09680-z.html
   My bibliography  Save this article

US monetary policy, the global financial cycle and cross-country financial cycles

Author

Listed:
  • Vrinda Gupta

    (Indian Institute of Technology)

  • Amlendu Dubey

    (Indian Institute of Technology)

Abstract

The literature extensively examines the impact of US monetary policy on global financial cycle; however, it does not show whether specific cross-country financial cycles exist or whether the US monetary policy has any differentiated impact on them. In this paper we investigate the existence of cross-country financial cycles across a group of advanced and emerging market economies for portfolio, FDI and credit inflows and outflows. We find that cross-country financial cycles exist and the impact of US monetary changes on them varies as compared to the impact on global financial cycle. We find that the impact on global financial cycle is more pronounced and lasts longer as compared to impact on cross-country financial cycles. Rather than the US monetary policy which determines global financial cycle, macro-financial linkages between countries determine their cross-country cycles.

Suggested Citation

  • Vrinda Gupta & Amlendu Dubey, 2024. "US monetary policy, the global financial cycle and cross-country financial cycles," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 48(4), pages 999-1019, December.
    • Handle: RePEc:spr:jecfin:v:48:y:2024:i:4:d:10.1007_s12197-024-09680-z
    DOI: 10.1007/s12197-024-09680-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12197-024-09680-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12197-024-09680-z?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.

    More about this item

    Keywords

    Cross-country financial cycles; Global financial cycle; US monetary policy; Capital flows;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy

    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:spr:jecfin:v:48:y:2024:i:4:d:10.1007_s12197-024-09680-z. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.