Galina Hale (Federal Reserve Bank of San Francisco) speaks at the ESM

"U.S. monetary policy and fluctuations of international bank lending"

Abstract of the paper to be presented

There is no consensus in the empirical literature on the direction in which changes in the U.S. monetary policy affect international bank lending. In this paper we provide an explanation for seemingly contradictory findings: during time periods of expansion of capital flows from advanced to emerging economies, the observed correlation between federal funds rate and bank lending is positive, while during time periods when such capital flows are retracting, the observed correlation between federal funds rate and bank lending is negative. We document differences in these effects across borrowers’ regions, sectors, and across debt instruments. We further investigate the mechanisms underlying the differences both in terms of traditional push and pull factors and in terms of differences across the two regimes (expansion and retrenchment) we identified.

Galina Hale (Borisova) is a Research Adviser at the Federal Reserve Bank of San Francisco, where she worked since 2006. Prior to joining the Federal Reserve she was an Assistant Professor in the Economics Department of Yale University. She also taught as a visiting faculty at Stanford and UC Berkeley Economics Departments and Haas School of Business. Galina began to study economics in Russia, first in Moscow State University economics department and then at the New Economic School's master's program. She briefly worked as a Consultant for the Russian Ministry of Finance. She received her PhD in economics in 2002 from UC Berkeley, under the supervision of Barry Eichengreen.
 

This is an ESM research internal seminar. If you would like to attend, please write an email to ESMresearch@esm.europa.eu