Financial Flows and the International Monetary System

33 Pages Posted: 19 May 2015

See all articles by Evgenia Passari

Evgenia Passari

Université Paris Dauphine

Hélène Rey

London Business School; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

Multiple version iconThere are 2 versions of this paper

Date Written: May 2015

Abstract

We review the findings of the literature on the benefits of international financial flows and find that they are quantitatively elusive. We then present evidence on the existence of a global cycle in gross cross border flows, asset prices and leverage and discuss its impact on monetary policy autonomy across different exchange rate regimes. We focus in particular on the effect of US monetary policy shocks on the UK's financial conditions.

Keywords: financial integration, monetary policy

JEL Classification: E5, F3

Suggested Citation

Passari, Evgenia and Rey, Helene, Financial Flows and the International Monetary System (May 2015). CEPR Discussion Paper No. DP10592, Available at SSRN: https://ssrn.com/abstract=2608050

Evgenia Passari (Contact Author)

Université Paris Dauphine ( email )

Helene Rey

London Business School ( email )

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Centre for Economic Policy Research (CEPR)

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National Bureau of Economic Research (NBER)

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