When is US bank lending to emerging mkts volatile?

CENTRAL BANK RESEARCH - In a New York Fed staff report, Linda S. Goldberg, finds out what causes fluctuations in lending by US banks to emerging markets. Goldberg finds the most important influence is the state of the US economy - when US growth is strong foreign lending is substituted for domestic lending.

Abstract

Using bank-specific data on U.S. bank claims on individual foreign countries since the mid-1980s, this paper 1) characterizes the size and portfolio diversification patterns of the U

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