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dc.titleThe Second Wave of Global Liquidity: Why Are Firms Acting Like Financial Intermediaries?
dc.contributor.authorCaballero, Julián
dc.contributor.authorPanizza, Ugo
dc.contributor.authorPowell, Andrew
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.date.available2016-05-18T00:00:00
dc.date.issue2016-05-04T00:00:00
dc.description.abstractRecent work suggests non-financial firms have acted like financial intermediaries particularly in emerging economies. This paper corroborates these findings but then asks "why?" The results indicate evidence for carry-trade activities, but they are focused on countries with higher levels of capital controls, particular controls on inflows. There is little evidence for such activities given other potential motives. It is posited that this phenomenon is due more to the reaction of countries in the face of low global interest rates, quantitative easing and strong capital inflows than incomplete markets or the retreat of global banks due to impaired balance sheets or tighter regulations.
dc.format.extent46
dc.identifier.doihttp://dx.doi.org/10.18235/0011735
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/The-Second-Wave-of-Global-Liquidity-Why-Are-Firms-Acting-Like-Financial-Intermediaries.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectCapital Control
dc.subjectCarry Trade
dc.subjectFinancial Asset
dc.subjectFinancial Bond
dc.subjectInterest Rate
dc.subjectGlobal Financial Crisis
dc.subjectFinancial Risk
dc.subject.jelcodeE51 - Money Supply • Credit • Money Multipliers
dc.subject.jelcodeF30 - International Finance: General
dc.subject.jelcodeF33 - International Monetary Arrangements and Institutions
dc.subject.keywordsfinancial intermediaries;interest rates;foreign currency bond issuance;financial asset
idb.identifier.pubnumberWorking Papers
idb.operationRG-K1089
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