Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/129937 
Year of Publication: 
2015
Series/Report no.: 
Working Papers No. 2015-08
Publisher: 
Banco de México, Ciudad de México
Abstract: 
Financial stability discussions have mainly revolved around the degree of leverage in financial institutions. Yet, some authors have argued that there might be mechanisms associated with unleveraged institutions that could entail financial instability. We aim to shed light on the possible presence of run-like dynamics in the bond fund flows to and from a group of Emerging Market Economies (EMEs). We examine some of the US monetary policy's implications on these dynamics. As argued, e.g., in Feroli et al. (2014), given the type of incentives many funds face, run-like dynamics might take place, although such funds are mostly unleveraged. We find evidence of the presence of runlike dynamics in the bond flows in several EMEs. We also find evidence that changes in US monetary policy affect such dynamics. Evidently, run-like dynamics could potentially take place in the future.
Subjects: 
financial leverage
emerging market economies
US monetary policy
unconventional monetary policy
JEL: 
F3
F4
Document Type: 
Working Paper
Appears in Collections:

Files in This Item:
File
Size
781.26 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.