International Fiscal-financial Spillovers: The Effect of Fiscal Shocks on Cross-border Bank Lending »
Series: IMF Working Papers
Author(s): Sangyup Choi , Davide Furceri , and Chansik Yoon
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 12 July 2019
Keywords: Financial crises, Economic conditions, Nominal effective exchange rate, Fiscal sector, Real effective exchange rates, Fiscal-financial spillovers, Cross-border banking flows, Local projections, Nonlinear effects, Trilemma.
This paper sheds new light on the degree of international fiscal-financial spillovers by investigating the effect of domestic fiscal policies on cross-border bank lending. By estimating the dynamic response of U.S....