Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/216798
Authors: 
Barbone Gonzalez, Rodrigo
Khametshin, Dmitry
Peydró, José-Luis
Polo, Andrea
Year of Publication: 
2019
Series/Report no.: 
Economic Working Paper Series 1648
Abstract: 
We show that local central bank policies attenuate global financial cycle (GFC)’s spillovers. For identification, we exploit GFC shocks and Brazilian interventions in FX derivatives using three matched administrative registers: credit, foreign credit flows to banks, and employer-employee. After U.S. Federal Reserve Taper Tantrum (followed by strong Emerging Markets FX depreciation and volatility increase), Brazilian banks with larger ex-ante reliance on foreign debt strongly cut credit supply, thereby reducing firm-level employment. However, a large FX intervention program supplying derivatives against FX risks—hedger of last resort—halves the negative effects. Finally, a 2008-2015 panel exploiting GFC shocks and local related policies confirm these results.
Subjects: 
foreign exchange
monetary policy
central bank
bank credit
hedging
JEL: 
E5
F3
G01
G21
G28
Document Type: 
Working Paper

Files in This Item:
File
Size
478.4 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.