Data and Code for: “The Financial Center Leverage Cycle: Does it Spread around the World?”

Resource Type
  • Kaminsky, Graciela (George Washington University)
  • Medina, Leandro (International Monetary Fund)
  • Wang, Shiyi (George Washington University)
Publication Date
Funding Reference
  • National Science Foundation
    • Award Number: 1023681
  • Institute for New Economic Thinking
    • Award Number: INO14-00009)
Free Keywords
International Borrowing Cycles; Capital Flows Push and Pull Factors; Global and Regional Factors; Financial Center Leverage Cycles
  • Abstract

    With a novel database, we examine the evolution of capital flows since the collapse of the Bretton Woods System in the early 1970s. We decompose capital flows into global, regional, and idiosyncratic factors. In contrast to previous findings, which mostly use data from the 2000s, we find that booms and busts in capital flows are mainly explained by regional factors and not the global factor. We link leverage in the financial center to regional capital flows and the cost of borrowing in international capital markets to examine the drivers of capital flow bonanzas and busts.
Temporal Coverage
  • 1973-01-01 / 2017-12-31
    Time Period: Mon Jan 01 00:00:00 EST 1973--Sun Dec 31 00:00:00 EST 2017
Geographic Coverage
  • Capital Flows to Asia, Europe, and Latin America
This study is freely available to the general public via web download.
  • Has version
    DOI: 10.3886/E119502V1
  • Kaminsky, Graciela Laura, Leandro Medina, and Shiyi Wang. “The Financial Center Leverage Cycle: Does It Spread around the World?” AEA Papers and Proceedings 110 (May 1, 2020): 504–10.
    • ID: 10.1257/pandp.20201009 (DOI)

Update Metadata: 2020-07-29 | Issue Number: 1 | Registration Date: 2020-07-29