Global Asymmetries in Monetary Policy Operations: Debtor Central Banks of the Mena Region

Schnabl, Gunther; Schobert, Franziska

doi:10.1111/j.1467-9957.2009.02120.x

Cited by 7 publications

(10 citation statements)

References 8 publications

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“…Because the loose US monetary policy also contributed to hiking oil and raw material prices, also oil and raw material exporting countries felt forced to tighten monetary policy stances. For sterilization purposes they mainly used government deposits at the central bank and fast growing stabilization funds (Schnabl and Schobert, 2009). As shown in Figure 1, the current account imbalances between the USA and the countries pegging their currencies to the dollar further hiked after the year 2001, now being dubbed "global imbalances."…”

Section: Current Account Transmission In the Dollar Blocmentioning

confidence: 99%

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Reverse Causality in Global and Intra‐European Imbalances

Schnabl

Freitag

2012

Rev International Economics

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The paper discusses global current account imbalances in the context of an asymmetric world monetary system. It identifies the USA and Germany as center countries with rising/high current account deficits (USA) and surpluses (Germany). These are matched by current account surpluses of countries stabilizing their exchange rates against the dollar (dollar periphery) and current account deficits of countries stabilizing their exchange rates against the euro or members of the euro area (euro periphery). The paper finds that changes of world current account positions are closely linked to the monetary policy decision patterns both in the centers and peripheries. Whereas in the centers current account positions are affected by monetary policies, in the peripheries exchange rate stabilization cum sterilization matters. In specific, monetary expansion in the USA as well as exchange rate stabilization and sterilization policies in the dollar periphery are found to have contributed to global imbalances.

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Section: Current Account Transmission In the Dollar Blocmentioning

confidence: 99%

“…4 4 Concerning more information on the choice of this sterilization proxy see Schnabl and Schobert (2009). …”

mentioning

confidence: 99%

Reverse Causality in Global and Intra‐European Imbalances

Schnabl

Freitag

2012

Rev International Economics

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“…Figure also shows the sharp increase in reserves beginning in December 2002, reaching over 30% of assets and remaining quite high in recent years. As discussed previously, the increase was a result of the positive conclusion of the “Paris II” donor conference, which led to a large capital inflow (Poddar et al , Schnabl and Schobert ). Therefore, the increase was the outcome of a surge in excess reserve balances, not an increase in required reserves as there was no regulatory change during this time.…”

Section: Results: the Response To The Reserve Requirement Changementioning

confidence: 83%

“…Then, the conclusion of the “Paris II” donor conference in November 2002 and its agreement of financing support produced a positive signal (e.g., the Eurobond spread decreased from over 1,000 bps in October 2002 to 860 by end‐November 2002; the interbank rate dropped from 8.3% to 5.5% over the same period). In response, capital inflows surged and net foreign assets at the BDL reversed course as shown in the 2002Q4 figure in Panel B (also see Poddar et al , Schimmelpfennig and Gardner , Schnabl and Schobert ).…”

Section: Contextmentioning

confidence: 86%

Reason for Reserve? Reserve Requirements and Credit

Mora¹

2014

J of Money Credit Banking

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This paper considers the impact of a regulatory policy action on bank credit and traces its incidence across banks. I make use of a reserve requirement increase in Lebanon that was considerably greater on foreign currency deposits than on domestic currency deposits. All banks cut lending as they scrambled to adjust portfolios. But the policy shock disproportionately affected banks with a greater reliance on dollar funding and with low buffers of dollar liquid assets. Exposed domestic‐owned banks also adjusted more slowly than similar foreign‐owned banks that obtained outside funding. Descriptive firm–bank matching evidence reveals a disproportionate impact on small firms.

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“…For the estimations monthly data are used, which helps to increase the robustness of the results. Fur-4 Concerning more information on the choice of this sterilization proxy see Schnabl and Schobert (2009). 5 Relative and absolute first differences are both used in the literature.…”

Section: Granger Testsmentioning

confidence: 99%

Determinants of Global and Intra-European Imbalances

Schnabl

Freitag

2011

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in GLOBAL FINANCIAL MARKETSDecember 2011 2 Working Papers on Global Financial Markets No. 25Determinants of Global and Intra-European Imbalances* Abstract:The paper discusses global current account imbalances in the context of an asymmetric world monetary system and asymmetric current account developments. It identifies the US and Germany as center countries with rising / high current account deficits (US) and surpluses (Germany). These are matched by current account surpluses of countries stabilizing their exchange rates against the dollar (dollar periphery) and current account deficits of countries stabilizing their exchange rate against the euro or members of the euro area (euro periphery). The paper finds that changes of world current account positions are closely linked to the monetary policy decision patterns both in the centers and peripheries. Whereas in the centers current account positions are affected by monetary policies, in the peripheries exchange rate stabilization cum sterilization matters. In specific, monetary expansion in the US as well as exchange rate stabilization and sterilization policies in the dollar periphery are found to have contributed to global imbalances.

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Global Asymmetries in Monetary Policy Operations: Debtor Central Banks of the Mena Region

Cited by 7 publications

References 8 publications

Reverse Causality in Global and Intra‐European Imbalances

Reverse Causality in Global and Intra‐European Imbalances

Reason for Reserve? Reserve Requirements and Credit

Determinants of Global and Intra-European Imbalances

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