Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/225519 
Year of Publication: 
2019
Citation: 
[Journal:] Journal of Finance [ISSN:] 1540-6261 [Volume:] 74 [Issue:] 1 [Publisher:] Wiley [Place:] Hoboken [Year:] 2019 [Pages:] 55-90
Publisher: 
Wiley, Hoboken
Abstract: 
We identify the international credit channel by exploiting Mexican supervisory data sets and foreign monetary policy shocks in a country with a large presence of European and U.S. banks. A softening of foreign monetary policy expands credit supply of foreign banks (e.g., U.K. policy affects credit supply in Mexico via U.K. banks), inducing strong firm-level real effects. Results support an international risk-taking channel and spill overs of core countries’ monetary policies to emerging markets, both in the foreign monetary softening part (with higher credit and liquidity risk-taking by foreign banks) and in the tightening part (with negative local firm-level real effects).
Subjects: 
monetary policy
financial globalization
quantitative easing (QE)
credit supply
risk-taking
foreign banks
JEL: 
E52
E58
G01
G21
G28
Published Version’s DOI: 
Additional Information: 
This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.
Document Type: 
Article
Document Version: 
Accepted Manuscript (Postprint)
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