Slides.pdf

f142351.slides.pdf
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🔗 Source: conference.nber.org
📊 Size: 2.12 MB
👤 Author: Maryam Farboodi MIT Sloan,NBER and CEPR0.5cm Péter Kondor London School of Economics and CEPR
⬇️ Downloads: 208

Summary

Heterogeneous exposure to credit cycles occurs due to frictions in the global capital supply, with countries differentially exposed based on lender expertise and firm collateral quality. Global institutions allocate credit across firms, with some lenders having an advantage in opaque countries. When lenders shift from bold to cautious, firms respond differently across countries, with those in opaque countries choosing riskier strategies and experiencing higher exposure to boom-bust cycles. This leads to a partition of countries into low and high exposure groups, matching stylized facts on capital flows and output. Excess global saving increases the number of countries exposed to larger boom-bust cycles.

Description

Heterogeneous exposure to credit cycles occurs due to frictions in the global capital supply, with countries differentially exposed based on lender expertise...

Technical Information

  • File Format: PDF
  • File Size: 2.12 MB
  • Pages: 27
  • Language: EN
  • Author: Maryam Farboodi MIT Sloan,NBER and CEPR0.5cm Péter Kondor London School of Economics and CEPR
  • Total Downloads: 208
  • Last Updated: 4 hours ago

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