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A Peer-reviewed scientific articles/A1 Journal article (refereed), original research
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Bond finance, bank credit, and aggregate fluctuations in an open economy, Journal of Monetary Economics January (2017). Chang, Roberto; Fernandez, Andres; Gulan, Adam

Category A Peer-reviewed scientific articles
Sub-category A1 Journal article (refereed), original research
auki Internal authors
All authors as text Chang, Roberto; Fernandez, Andres; Gulan, Adam 
Number of authors
Status Published
Year of publication 2017 
Date 15.01.2017 
Name of article Bond finance, bank credit, and aggregate fluctuations in an open economy 
Name of journal Journal of Monetary Economics
Volume of issue 85 
Number of issue January 
Pages 90-109 
Abstract Corporate sectors in emerging markets have noticeably increased their reliance on foreign financing, presumably reflecting low global interest rates. The evidence also shows a rebalancing from bank loans towards bonds. To study these developments, we develop a dynamic open economy model where these modes of finance are determined endogenously. The model replicates the stylized facts following a drop in world interest rates; in particular, rebalancing towards bonds occurs because bank credit becomes relatively more expensive, reflecting the scarcity of bank equity. More generally, the model is suitable for studying interactions between modes of finance and the macroeconomy.
Free text descriptor in Finnish yritykset; rahoitus; joukkovelkakirjat; luotot; kehittyvät markkinat 
Free text descriptor in English Bank credit; Bonds; Corporate debt; Emerging markets 
ISSN / e-ISSN 0304-3932 
auki Internet addresses
Additional information Available online 8 November 2016.
Notes BoF DP 22/2016 
Open Access Not open

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