Foreign monetary policy affects French and Italian lending – researchers
US policy especially significant, Banque de France paper finds
Monetary policy in foreign countries, especially the US, has significant effects on the supply of loans by Italian and French banks, a working paper published by the Banque de France finds.
In International spillovers of monetary policy: evidence from France and Italy, Julia Schmidt, Marianna Caccavaio, Luisa Carpinelli and Giuseppe Marinelli look at data from French and Italian banks from 2000 to 2015. The authors investigate the impact of monetary policy in the US and UK on these banks’
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