“International spillovers of monetary policy through global banks”

That’s the title of a special issue of the Journal of International Money and Finance that’s just been published.

Source: Buch et al. (2018).

From the introductory editorial:

“…most of the literature [on spillovers] has focused on macroeconomic channels, whereas comparatively less attention has been paid to transmission via banks, which may vary depending on individual banks’ characteristics and the features of national banking systems.

Against this background, the International Banking Research Network (IBRN) launched a project aimed at closing some of these gaps, drawing on a unique network of researchers and data. Country teams compiled individual bank-level data for the period from 2000 through 2015, usually based on confidential data proprietary to central banks, and then analyzed those data using a common empirical method.

Draft versions of these papers were presented at a workshop organized by the Banque de France, the Paris School of Economics, the International Banking Research Network (IBRN), the Journal of International Money and Finance and the Deutsche Bundesbank, held at the Banque de France headquarters on June 30, 2017. 

… this special issue consists of ten papers that offer new perspectives on the transmission of monetary policy via bank lending, examining in particular the differential effects along three key dimensions: (i) bank assets and funding, (ii) domestically owned institutions and hosted foreign-owned banks, and (iii) periods of conventional and unconventional monetary instruments.

The papers are here:

  • Argimon, I., Bonner, C., Correa, R., Duijm, P., Frost, J., de Haan, J., de Haan, L., Stebunovs, V., 2018. Financial Institutions’ Business Models and the Global Transmission of Monetary Policy.
  • Auer, S., Friedrich, C., Ganarin, M., Paligorova, T., Towbin, P., 2018. International Monetary Policy Transmission through Banks in Small Open Economies.
  • Avdjiev, S., Koch, C., McGuire, P., von Peter, G., 2018. Transmission of Monetary Policy through Global Banks: whose Policy Matters?
  • Barbosa, L., Bonfim, D., Costa, S., Everett, M., 2018. Cross-border Spillovers of Monetary Policy: what changes during a Financial Crisis?
  • Bubeck, J., Habib, M., Manganelli, S., 2018. The Portfolio of Euro Area Fund Investors and ECB Monetary Policy Announcements.
  • Bussière, M., Buch, C., Goldberg, L., Hills, R., 2018. The International Transmission of Monetary Policy.
  • Caccavaio, M., Carpinelli, L., Marinelli, G., Schmidt, J., 2018. International Spillovers of Monetary Policy: Evidence from France and Italy.
  • Gajewski, K., Jara, A., Kang, J., Mok, J., Moreno, D., Serwa, D., 2018. International Bank Lending Channel Spillovers of Monetary Policy: Lessons from Chile, Korea, and Poland.
  • Hills, R., Ho, K., Reinhardt, D., Sowerbutts, R., Wong, E., Wu, G., 2018. The International Transmission of Monetary Policy through Financial Centres: Evidence from the United Kingdom and Hong Kong.
  • Lindner, P., Loeffler, A., Segalla, E., Valitova, G., Vogel, U., 2018. International Monetary Policy Spillovers through the Bank Funding Channel.

The special issue was edited by Claudia Buch, Matthieu Bussière, Menzie Chinn, Linda Goldberg, and Robert Hills.

55 thoughts on ““International spillovers of monetary policy through global banks”

  1. Moses Herzog

    If you hunt you can find an ungated link to the paper sourced in the flow chart in the post. I imagine at least a 50/50 chance on ungated with the others. Should be interesting reading. I’m assuming this has more bearing on Europe, but I guess it’s important everywhere. I have many pet peeves with banks and bank regulation. It would make quite a list if I sat down to think and wrote them all down. At the top of that list would be equity ratios and capital. Then we can go to “off balance sheet” transactions and CLOs and on and on and on and on.



    So WHO extended all those loans to Greece?? Who was it exactly?? If you are to believe Jean-Claude Juncker and Wolfgang Schauble, Greece had zero counter-parties on their loans. At least none located on this planet. The loans to Greek banks came from a magical void in outer space with a little help from Dagobah, Mos Eisley, and planet Dune.

    Only one of the credit officers (from planet Zenaun, inside the 6,001st nebula of the Delta Quadrant)—-that extended loans to Greece, has EVER been spotted in public, seen in this video here:

    Even Charlton Heston was shocked to see one of the infamous credit officers from that galactic void in that publicly exhibited video. Eventually, yes, it’s true, they had to hose Charlton down:

    Now this may not be related to monetary policy transmission effects, but it does show you how tight the relationships are between these banks.

    But Jean-Claude Juncker is a “classy” guy and only shares time with people of the highest ethical and moral standards. Would I lie to you?? kids……??





  2. Moses Herzog

    Again, not related to monetary policy transmission, but related to banks and a type of contagion.

    I wonder how badly Brussels really wants to give UK the boot with this one simmering on the front burner?? I think if I was them I’d be rethinking the whole March 29 “Deadline” thing. But then again, they seem to enjoy holding a gun up to their own head, don’t they??

  3. Moses Herzog

    People really have no idea what a rough day the day of the SOTU address is for donald trump. Let’s hope he can hold up.

    #MAGA!!!! Mopey Asleep Groggy All-Day

    Early stage Alzheimer’s Reagan used to call it “delegating”, but I guess if you have high-turnover for White House jobs working with a orange faced bastard that no one likes interacting with and TONS of unfilled jobs that can only be filled by presidential appointment, it makes it much more difficult to “delegate”.

  4. Moses Herzog

    Isn’t it funny how great Mexican and Central American immigrants are, in the sense you can pay them next to nothing, screw them out of benefits without worry they’ll complain to authorities—-and how suddenly inconvenient they become when they make you look like a hypocritical bastard??


    Funny how that works, eh?? It’s also funny donald trump enjoys sending these same people he employs to jail, where ICE agents drug them or let them die from dehydration but the companies and CEOs like donald trump who employ them never get so much as a light slap on the wrist. Funny how those things always work out for the “family values” Republicans. This is the REAL reason why nothing serious ever will be done to eliminate illegal immigrants, because to be serious about it you would have to punish the white business owners who employ the same immigrants they <b<pretend to hate—and that’s NEVER going to happen on Republicans’ watch.

    1. noneconomist

      Haven’t seen that many elderly white guys jumping up and down since Clemson knocked off the Tide. Many will be in the hot tub for a couple of days.

      1. sammy

        CBS News and CNN released instant polls taken immediately after President Trump’s State of the Union address with both polls finding 76 percent of those who watched approved of the speech.

        1. pgl

          Polls taken immediately before the people polled had the chance to realize that Trump lied to them just about everything. No wonder you loved this speech – it was Trump’s dishonesty in its highest form.

      2. ilsm

        SOTU, Trump did say he was very happy 40 democrat neocon senators added money to the pentagon trough budget he sent up the past 2 years. In a round about way. Rebuilding the bi-partisan reason the US cannot have good things like Germans aka defense [of the empire].

  5. Moses Herzog

    Look kids, I found some gruesome video of rapists and murderers. Not suitable viewing for anyone under the age of 40 and/or verifiable experience watching graphic violence and gore:

    The rapists and murderers in this video are coming to your home very soon, they already have your home address and are practicing with white-skinned voodoo dolls and box-cutters. Make sure you have your AK-47 loaded and ready. 7–year old Wilson is dangerous, and has a record of enjoying playing with children in his own age group, and has been known to “finish” and or “terminate” (wink wink, we all know what this REALLY means, sicko!!!) his Mom’s home-cooked meals in 10 minutes and then making a sicko gruesome smile thinking about what may be offered for his dessert. Frightening….. it is thought this Hellraiser Wilson may want to attend college one day, and if he does, will NOT be attending Trump College for Perennial Losers or Betsy Devos’ Camp for Wayward Debutante Girls, but would rather attend an accredited 4-year University of higher learning. Republicans are now working on what they call “the nuclear option” to stop inherently evil sickos like Wilson from enacting their diabolical and satanic life plans. Until this “nuclear option” is passed, my advice for all paranoid white people afraid of fluoride poisoning is to listen to Alex Jones tonight and huddle, shaking in fear, next to your nearest evangelical minister.

  6. Moses Herzog

    We now have a president, who is afraid of fictional rapists and murderers dashing through USA’s southern border, but salivates at the thought of a pedophile becoming a U.S. Senator.

    Just think folks, think about this, just for maybe 2 minutes, toss it around in your head: 91% of registered Republicans in Alabama, voted for a pedophile. 91%. That’s MORE than 9 out of 10 “family values” Republicans saying “I’m cool with a man who molests underage girls, representing me in the U.S. Senate”. Do we really need to wonder why this country is going downhill in a go-kart at 200mph???


    This is dedicated to you 91% Alabama Republicans, voting for a pedo to represent your family on the U.S. Senate floor.

    Can’t wait for you to “explain” that one to your God on judgement day. Can I watch??

    1. pgl

      I had to laugh when he noted the attack on NYC’s subway. Hey – violence on the subways is a big deal to me but the dude he featured was from Long Island – not Mexico. Now if we built a wall keeping Long Islanders from coming to my city – I’d help build it as well as paint it!

  7. JBH

    Donald Trump, our brawny protean President, gave a winning state of the union address. He stood up for America and its exceptionalism. Upwards of 75% who watched polled thumbs up. Meaning a third who had not voted for him agreed with much that he said, and so evidently are open-minded enough to have come around.

    The pendulum had swung too far. This president has put his shoulder and voice into swinging it back. For which he is vilified in the MSMedia and other odious quarters like academia. This vilification is not about his hair or his mannerisms. It is about the very heart of America, which with every beat thumps personal liberty and freedom from the dictates of the omnivorous state brought to you by Wilson and Roosevelt and others who followed like Obama. To those who would see socialism win out, as it has in once mighty Great Britain, which is now diluted by third world immigrants into a third world nation, the president threw down this gauntlet – America will never be a socialist country.

    Often Lady Justice does not come ‘round right away. Perhaps she rides the pendulum, I know not. But after two decades, thanks to President Trump justice finally arrived for Alice Johnson when she was pardoned and released from prison. Yet on the flip side, a clarion call sounds as well. Justice served in a court of law to those criminals who do deserve to be behind bars for crimes from treason to pedophilia. Many of which were high level officials in prior administrations, in prior Congresses, celebrities and higher ups in Hollywood, and on. Nothing is more important than rooting out the corruption at the top that has eroded our society and our culture, and therefore the roadbed of our economy for all too long. Nothing.

    May our great president – ranking in stature with Washington and Lincoln – open the lid on this Pandora’s box and let the next act begin. Do this Mr. President. And do the Wall. For in so doing it will put this changed-for-the-worse America back on the road to its former greatness.

    1. Moses Herzog

      @ JBH
      You say the following: “Yet on the flip side, a clarion call sounds as well. Justice served in a court of law to those criminals who do deserve to be behind bars for crimes from treason to pedophilia. Many of which were high level officials in prior administrations.”

      I assume you were referring to the 51st Speaker of the United States House of Representatives from 1999 to 2007, Republican pedophile Dennis Hastert. He held the same exact job Nancy Pelosi has now, for 8 years. Republican Speaker of the House and Republican pedophile Dennis Hastert served mostly under Republican President “W” Bush. He plead guilty and was sent to federal prison while President Obama was in office. The judge called Republican pedophile Hastert “a serial child molester” at his sentencing hearing.

    2. noneconomist

      Yea, though I walk through the valley of death (and investigation) I fear not. For the Great and Powerful Oz has assured me that the guilty will surely be punished. The treasonous, the culturally filthy celebrities, the pizza makers. All will fall before the might and majesty of our revered leader. Let us dwell in the House of Trump forever.

    3. pgl

      “Upwards of 75% who watched polled thumbs up. ” Source for this spin? Oh the Faux News poll. You must have dreamed a speech as the actual speech was weak at best. As Schumer noted it was delivered by Dr. Jekyll and Mr. Hyde.

      1. Moses Herzog

        plus or minus 5% I don’t doubt the numbers at all. People (like me) who become nauseated and physically ill at the sound of Orange Excrement’s voice will skip the entire speech. The closest I came to watching donald trump lastnight was watching Douche Williams on MSNBC interview Ocasio-Cortez in her gorgeous white outfit. It was a fun 4 minutes of drooling. So who does that narrow down our viewing audience to?? Let’s say 3 out of 4 viewers were Republican. and 97% of that 3 of 4 viewers that is Republican will like the speech unconditionally, no matter what he says. So you take that 75% and multiply it by your 97%, and most likely it gives you a pretty damned accurate number on the % that liked the speech out of the “pool” or “sampling” of viewers.

        For further explanation, checkout Deming’s Red Beads Experiment. Deming spent a lot of time repeating this ad nauseam, and in 2019 long after Deming’s death, America still doesn’t “get it”.

        The Japanese “get it”. The Germans largely “get it”. God help us if China ever figures out The Red Beads Experiment—thank God for the USA they still haven’t got an inkling—if the Chinese ever do figure out the concept of The Read Beads Experiment America will be shit up the creek.

        Huawei and ZTE will be the LEAST of America’s problems the day that China solves that subtle riddle.

        1. baffling

          “plus or minus 5% I don’t doubt the numbers at all. People (like me) who become nauseated and physically ill at the sound of Orange Excrement’s voice will skip the entire speech.”
          exactly. so jbh and sammy, are you willing to acknowledge there is a significant bias in those numbers? or will you casually ignore this fact, and continue with a spin that is known to be inaccurate?

    4. 2slugbaits

      JBH I don’t waste my time watching SOTU speeches, but when you say “75% who watched polled thumbs up are you sure it was their thumb and not some other digit?

      omnivorous state brought to you by Wilson and Roosevelt

      The horror! Not to mention that loathsome Mercury dime with the Roman fasces on the back. I guess the John Birch Society was right all along.

      Often Lady Justice does not come ‘round right away.

      So you’re revising that February 2019 promise?

      once mighty Great Britain, which is now diluted by third world immigrants into a third world nation

      You mean Indian doctors and Polish plumbers and Belgian & German bankers? What next? Will those immigrants start invading the precious bodily fluids of Brits? Where’s General Jack Ripper when you need him?

      America will never be a socialist country

      You’re probably right. Socialism is reserved for plutocrats like Trump who socialize private risks and privatize profits. Good to know that there’s no such socialist practices as bankruptcy in your world of self-made men (and it’s always men, right?).

      A sincere word of advice. Seek some professional help. You show clear signs of paranoia and dementia, which is quite common in older men. Over the last year your posts have become increasingly unhinged.

      1. noneconomist

        If the Senate building should ever mysteriously burn with women dressed in white seen running from the flames, I would expect JBH to agree with a plan to banish the socialist and communists (i.e. Democrats) in Congress and allow Trump to take control of the government in order to save the republic. Once the vermin has been stripped of their seats, only true patriots–Republicans, who else?–will be allowed to serve.
        If, by that time, the 142,000 indictments have not been unsealed, I would also expect people’s courts to be set up to try and then punish the traitors JBH has warned us about.
        Punishment for witches will, of course, be consistent with past practices.
        It only follows –and JBH would like most heartily agree–that it must be a greater honor to be a street cleaner and citizen of this country than the king of a foreign state. (OK, OK I admit it. I plagiarized the most of that sentence)

      2. ilsm


        A large part of people watching the SOTU were Trumpsters, thus the positive polling as happened for Obama et al.

        My resident democrat when asked if she would watch the SOTU said: “he is not my president”,. I said “you sounds like the tea party about 8 years ago”.

        Still in the dog house, very used to it by now.

        1. 2slugbaits

          ilsm Actually, I don’t watch the SOTU regardless of who is President. I gave it up long, long ago. It’s just two hours of my life that I’ll never get back. Seriously, how much clapping after every four words can a person be expected to tolerate? The SOTU is as pointless as those stupid Presidential “debates”, which I don’t really watch either.

          1. ilsm

            My TV has been off since the clock expired on the Super Bowl Sunday!

            Sleep or any book is better than any SOTU, too much unbounded rhetoric.

          2. noneconomist

            But it was good exercise for a lot of old white guys who, as we might expect, can certainly use it. (EMT’s were likely stationed close by).
            As I said, the scene bore a good resemblance to the cheering sections on both sides attending the Alabama-Clemson game.

        2. pgl

          You may be right. I choose to go to sleep before SOTU began simply because I cannot listen to another word from Trump.

          I did get up at 4AM and caught the reviews and was out for a 5AM run.

  8. pgl

    After Mnuchin said we would not go back to Obama’s alleged “socialism”, the Twitter blew up with all sorts of graphs showing how incredible the economy performed under this alleged socialism:


    Hey Mnuchin – you need to steal a lot more money from the Treasury else your gold digging wife gets bored with you.

    1. ilsm

      Not NK, Victoria Nuland [still with Hillary] would have been ‘doing’ in Moscow like she did in Kyiv, it would be Russia bc Russian coast guard defended Azov as since 1850!!!

      Besides Trump should be a demcrat hero for taking in Bolton a bit to the left of Hillary but no too.

      1. pgl

        WTF? I guess the Trumpsters will pretend Trump is Eisenhower as in “I Will Go to Korea”. Gee – Ike only got a truce in 1953 so technically we are still at war. And the North Koreans still continue to develop their nuclear program. In a word – Trump is an idiot.

        1. ilsm


          Panmunjong Armistice! And we do not celebrate it like the Armistice that ended WW I !!

          “Ike only got a truce…….”

          I like Ike…………. Stalin died in Mar 1953, the Soviets were on their back heel. Mao was getting tired.

          US had not declared war in 1950, no need for a peace treaty. US did not pack up and leave as with the similarly undeclared Vietnam debacle.

          Iraghisyria is nearing 18 years!! Will we just get an Armistice?

          Trump unlike his 3 predecessors has not started any thing and most different has the nerve to frighten the war party by talking about ending a quagmire or two.

        1. pgl

          Speaking of the Korean truce:


          “Shortly after his election, Eisenhower fulfilled his campaign pledge, though he was not very specific about exactly what he hoped to accomplish. After a short stay he returned to the United States, yet remained mum about his plans concerning the Korean War.”
          ke was Trumpian here?

          “After taking office, however, Eisenhower adopted a get-tough policy toward the communists in Korea. He suggested that he would “unleash” the Nationalist Chinese forces on Taiwan against communist China, and he sent only slightly veiled messages that he would use any force necessary (including the use of nuclear weapons) to bring the war to an end unless peace negotiations began to move forward.”

          Again Trumpian as in Fire and Fury. Yea we sort of got our truce but:

          “The most frustrating war in U.S. history had come to an end. America’s first experience with a “limited war,” one in which the nation did not seek (and did not obtain) absolute victory over the enemy, did not bode well for the future. Conflict in Vietnam was just around the corner.”

          Look – I liked Ike who was a far better President than Trump can ever imagine being. But his little truce was not that great of an achievement. But Trump thinks he deserves the Nobel Prize. Do they award a Nobel Prize for utter incompetence?!

  9. pgl

    Trump claimed “wages are rising at the fastest pace in decades.” No – that is a lie. Fastest in real terms since 2015/2016:


    “Wages rose 3.1 percent from December 2017 to December 2018, according to the Labor Department’s Employment Cost Index for civilian workers, a widely watched measure of pay that does not take inflation into account. That is the biggest increase — not adjusted for inflation — since the year that ended in December 2008. But adjusted for inflation, wages for all workers grew 1.3 percent from December 2017 to December 2018, making the increase only the largest since August 2016, according to the Labor Department. It’s worth noting that although real wage gains were higher in 2015 and 2016, that was a period of almost no inflation. So Trump can claim some credit for decent real wage growth now with inflation back at about 2 percent.”

    To be fair – he is only repeating what his “economic” team has been saying from Mnuchin to Stephen Moore to Kevin Hassett. So should we blame his team? Well – what idiot picked this team to be his economic advisers?

  10. pgl

    Interesting article from the El Paso Times:


    President Donald Trump used El Paso as an example of a safe city to bolster his argument that the United States needs to construct a wall along the U.S.-Mexico border during the State of the Union on Tuesday. “The border city of El Paso, Texas used to have extremely high rates of violent crime — one of the highest in the entire country, and considered one of our Nation’s most dangerous cities,” Trump said. “Now, immediately upon its building, with a powerful barrier in place, El Paso is one of the safest cities in our country.”

    This is what Trump tried to peddle last night but as this story documents – it is another one of Trump’s bald faced lies.

    1. baffling

      i often wonder what a “powerful” barrier actually is? does it fight back? is it loud? strange description used by potus.

  11. sammy

    SOTU address. Note the amount of times the Democrats gave standing ovations. Even OAC gave him a prolonged standing O, followed by chants of “USA, USA, USA” If this doesn’t qualify as a home run, nothing does.

      1. Moses Herzog

        I’ve noticed in my life, some of the very best teachers (I like to think that I in some form qualified as one, but I’m probably deluding myself) never give up hope on their worst students.

    1. noneconomist

      They gave him a big hand for increasing the number of women–specifically Democratic women– in Congress. You missed the irony? Jacky Rosen (remember Dean Heller licking Trump’s boots?) and Kristen Sinema owe their Senate seats to him.

    1. Moses Herzog

      @ sammy
      You get 1/4 point for proper sourcing (which is pretty amazing for a MAGA person, pat yourself on the back!!!). Minus 2 points for comprehension and the ability to distinguish different subject matter.

      Your baseball analogy is ironic though. It reminds me of the old quote by Barry Switzer: “Some people are are born on third base and go their entire lives thinking they hit a triple.”

    2. pgl

      Trump was bothered by the cheering of these ladies. He reminded me of the pitcher who gave up the home run. Ever heard of a gopher ball?

    3. baffling

      sammy, you do understand the irony that most of those women (especially democrats) arrived because suburban women voters were disgusted with trump? potus is not bright enough to recognize that irony. do you have the same level of emotional intelligence as well, sammy?
      you call it a home run. i would say he struck out. he did not accomplish anything. that is what is called losing. he gained no ground. in fact, after his speech, congress has determined it is warranted to investigate his decision making for possible cronyism and corruption. when potus is being investigated for his decisions which benefit him over the country, we have a problem. “an impressive success”-sammy, i don’t think it means what you think it means…

  12. noneconomist

    Special thank you to Trump from Nevada (pay attention Sammy) For the first time, women outnumber men in the Nevada Legislature, which is controlled by Democrats. Nevada now has two female U.S. Senators. Sen. Jacky Rosen was running even with Trump lapdog Heller in early fail in some polls. Almost every Nevada county–except Washoe and Clark– voted heavily for Trump. But Rosen won by +5% because a large swath of voters in those two counties–including now applauding women–were not Trumpers.
    As they did in 2016, the growing Las Vegas and Reno-Sparks metro areas rejected Trump, only this time in larger numbers and percentage. Hence, again, appreciative women, many of whom likely owe their new legislative seats to Glorious Leader.
    The Wall: (again, pay attention Sammy) if the wall was a have to have, Sinema would NOT have been elected to the Senate in Arizona. Recent polls show 91% of California Democrats are not in favor of a wall. If the wall were wildly popular in SoCal, the Republican House members who lost their seats in Orange/San Diego counties would have been among the elderly white men jumping up and down Tuesday night.
    Texas wall: Rep. Will Hurd, Republican from El Paso, whose district covers a fair amount of the proposed wall area which borders Mexico, is not in favor of a wall.
    Border security: (pay attention, please, Sammy) At one time, Trumps assured his backers the border could only be secured by a 35 foot concrete wall paid for by Mexico stretching from the Pacific to the Gulf of Mexico. That WAS the wall you were cheering for, right? It won’t be built because, well, it was a lie from the beginning. What? You knew that and winked anyway? Sure you did.
    But Trump does need a wall and not for border security. He needs one to prove his toughness to Limbaugh, Coulter, and Breitbart. But do keep chanting for the wall and continue in professing your astonishment in all those women applauding Trump. That must mean they love the guy, right?

    1. noneconomist

      Which border states support building a wall? Apparently, the wall is more popular in Iowa than it is in Texas, New Mexico, Arizona, or California. Where’s the national emergency that necessitates shutting down the government?

      1. sammy


        “Apparently, the wall is more popular in Iowa than it is in Texas, New Mexico, Arizona, or California.”

        You have the same understanding of the Electoral College as Hillary Clinton did.

        “Where’s the national emergency that necessitates shutting down the government?”

        The national emergency designation is to AVOID shutting down the government. I actually think he will use his CINC role to do it rather than National Emergency.

        1. noneconomist

          The states with the largest Hispanic/Latino populations, the ones that would be most affected by a lack of border security,do not favor building a border wall. So, the emergency/crisis Trump has described is an emergency where? In Kentucky? New Hampshire? North Dakota?
          And the need to avoid a government shutdown by declaring a national emergency is of grave importance in states thousands of miles from where where a national crisis supposedly exists?
          Build that wall, Sammy.
          The electoral college? Huh?

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