BIS paper pins down causal impact of capital flows

The Bank for International Settlements, Basel
The Bank for International Settlements, Basel
Photo: Ulrich Roth

A study published by the Bank for International Settlements breaks new ground by using confidential data on bank lending to isolate the causal effects of cross-border capital flows.

The working paper, by Iñaki Aldasoro, Paula Beltrán, Federico Grinberg and Tommaso Mancini-Griffoli, “disentangles” the causality by using BIS locational banking statistics to construct “granular” instrumental variables. The authors note capital flows are often driven by changes in risk sentiment, which is

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: