Publication
Jul 2005
This paper examines whether foreign bank assets change as a result of domestic and foreign macroeconomic shocks. The authors frame their analysis in a standard new open-economy macro model in which financial markets are imperfectly integrated and test the implications of their model for changes in foreign bank assets. They find evidence that nominal interest rate differentials and inflation differentials drive changes in foreign bank assets permanently, while growth rate differentials and exchange rates have only a temporary effect.
Download |
English (PDF, 41 pages, 1.0 MB) |
---|---|
Author | Claudia M Buch, Kai Carstensen, Andrea Schertler |
Series | Kiel Institute Working Papers |
Issue | 1254 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2005 Kiel Institute for the World Economy |