• Title of article

    Financialglobalization,financialcrisesandcontagion$

  • Author/Authors

    Enrique G. Mendoza، نويسنده ,

  • Issue Information
    روزنامه با شماره پیاپی سال 2010
  • Pages
    16
  • From page
    24
  • To page
    39
  • Abstract
    Two observationssuggestthatfinancialglobalizationplayedanimportantroleinthe recentfinancialcrisis.First,morethanhalfoftheriseinnetborrowingoftheU.S.non- financialsectorssincethemid-1980shasbeenfinancedbyforeignlending.Second,the collapseoftheU.S.housingandmortgage-backed-securitiesmarketshadworldwide effectsonfinancialinstitutionsandassetmarkets.Usinganopen-economymodelwhere financialintermediariesplayacentralrole,weshowthatfinancialintegrationleadstoa sharp riseinnetcreditinthemostfinanciallydevelopedcountryandtolargeassetprice spilloversofcountry-specificshockstobankcapital.Theimpactsoftheseshocksonasset prices areamplifiedbybankcapitalrequirementsbasedonmark-to-market.
  • Keywords
    Financial globalizationFinancial crisesContagionFinancial developmentU.S. crisis
  • Journal title
    Journal of Monetary Economics
  • Serial Year
    2010
  • Journal title
    Journal of Monetary Economics
  • Record number

    846369