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

Asia globe
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

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: