International Liquidity Shocks and Domestic Loan Supply in the Euro Area

Abstract

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

Capital flows in the euro area and TARGET2 balances

“…See for exampleMendoza (2010),Lane and Milesi-Ferretti (2011) andBarkbu, Eichengreen, and Mody (2012) for reviews of the empirical literature. In additionSchmidt and Zwick (2015) andZwick (2015) provide recent evidence for the euro area during the financial crisis.…”

Capital Flows in the Euro Area and TARGET2 balances

“…In particular, Tillmann (2013) investigates the effects of capital flow reversals on asset markets in emerging Asia while Sa, Towbin, and Wieladek (2014) and Sa and Wieladek (2015) look at the contribution of capital flow shocks to the housing booms in OECD countries and the US, respectively. Zwick (2015) explores the extent to which capital flow shocks were responsible for the protracted contraction of loan supply in the EMU after the outbreak of the Global Financial Crisis. However, the evidence provided by these studies is silent about the quantitative impact of the uneven distribution of central bank liquidity as measured by TARGET2 balances.…”

Capital Flows in the Euro Area and TARGET2 Balances

“…In particular, Tillmann (2013) investigates the effects of capital flow reversals on asset markets in emerging Asia while Sa, Towbin, and Wieladek (2014) and Sa and Wieladek (2015) look at the contribution of capital inflow shocks to the housing booms in OECD countries and the US respectively. Zwick (2015) explores the extent to which capital flow shocks were responsible for the protracted contraction of loan supply in the EMU after the outbreak of the Global Financial Crisis. However, the evidence provided by these studies is silent about the quantitative impact of TARGET2.…”