infonet-economy

An ongoing active debate considers the role of the Global Financial Cycle (GFC) in driving international capital flows - especially in emerging economies - as well as the policy options available to absorb their impact. We make two contributions to the debate. First, we rely on a structural measure of the GFC developed in a companion paper to identify episodes of large capital flows…

Devaux, Caroline; Nicolaï, Jean-Philippe

Brausmann, Alexandra; Flubacher, Moritz; Lechthaler, Filippo

Fiechter, Peter; Halberkann, Jérome; Meyer, Conrad (2012). Determinants and Consequences of a Voluntary Turn Away from IFRS to Local GAAP : Evidence from Switzerland. Working Paper Series 1, University of Zurich.

How does FinTech credit mitigate local credit supply frictions in China's segmented credit market? In our simple theoretical models, we show that FinTech credit (i) expands the extensive margin of credit to borrowers of lower credit scores and (ii) provides relatively more credit to borrowers with lower credit scores. We confirm both predictions based on comprehensive data from one…

We model the feedback effect of delta hedging for the spot market volatility of the forex market (dollar-yen and dollar-euro) using an economy of two types of traders, an option market maker (OMM) and an option market taker (OMT), whose exposures reflect the total outstanding positions of all option traders in the market. A different hedge ratio of the OMM and OMT leads to a net…

The paper analyzes the impact of International Monetary Fund (IMF) programs, in conjunction with country-specific fundamentals and global factors, on the sovereign spreads in selected European emerging market economies (EMEs) from 2000 to 2016. For this purpose, we construct IMF indexes to capture the size of financial resources and the degree of implementation of IMF programs. Our…

Caves, Katherine M.; Ghisletta, Andrea; Bolli-Kemper, Johanna Mirka; Renold, Ursula

Kopp, Daniel; Siegenthaler, Michael