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Financial Flows and the International Monetary System

Author

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  • Evgenia Passari

    (DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique)

  • Hélène Rey

    (London Business School - London Business School)

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.

Suggested Citation

  • Evgenia Passari & Hélène Rey, 2015. "Financial Flows and the International Monetary System," Post-Print hal-01453254, HAL.
    • Handle: RePEc:hal:journl:hal-01453254
    DOI: 10.1111/ecoj.12268
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01453254
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    More about this item

    Keywords

    Monetary policy autonomy; Financial Flows; International Monetary System;
    All these keywords.

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • F3 - International Economics - - International Finance

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