Cournot Seminar – Jan DITZEN (U. of Bolzano)
From 2:00pm to 3:30pm
Event details :
Global Factors in Non-core Bank Funding and Exchange Rate Flexibility
Luis A.V. Catao, Jan Ditzen, Daniel Marcel te Kaat
Abstract: We show that fluctuations in the ratio of non-core to core funding in the banking systems of advanced economies are driven by a handful of global factors of both real and financial natures, with country-specific factors playing no significant roles. Exchange rate exibility helps insulate the non-core to core ratio from such global factors but only significantly so outside periods of major global shocks, as in 2007-2009 and 2020.
Keywords: Global Financial Cycle, Bank Funding, Mundellian Trilemma, Panel Cross-Sectional Dependence, Principal Components, Common Correlated Effects Estimator
Seminar webpage: https://beta-economics.fr/seminaires-cournot-2023-2024/