Fed policy’s global effects differ in booms and busts – BIS paper

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US monetary policy appears to affect lending across the globe

US monetary policy impacts global bank lending differently depending on whether lending is in a “boom”  or a “stagnation” regime, research published by the Bank for International Settlements finds.

The working paper by Stefan Avdjiev and Galina Hale notes some researchers have found a positive relationship between global bank lending and the federal funds rate, and others a negative relationship.

To solve this puzzle, they divide lending into  boom and stagnation regimes. They also split the

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