An interpretative survey of the literature on how international capital flows affect house prices, published in the Oxford Research Encyclopedia of Economics and Finance.
Based on historical bank branch-level lending and deposit data from 1920s' Japan, we show how branch banking integrated peripheral markets with the rest of the country, with large …
U.S. state-level banking deregulation during the 1980s considerably dampened the fallout on local economies of the China trade shock a decade later. The reason: households in …
After the inception of the euro, the real economy in most member countries remained dependent on credit by domestic banks, which increasingly funded themselves through cross-border …
During Japan's Lost Decade, regional credit reallocation by nationwide ('integrated') banks mitigated the real effects from the bank liquidity shock in prefectures with many …
The global savings glut (i.e. capital flows from China and other emerging economies into the U.S.) contributed significantly to the rise and fall of U.S. house prices prior to and …
Risk sharing in the EMU collapsed during the eurozone crisis. We show that one important reason for this was that there was too little direct (i.e. bank-to-real-sector) …
Sorting currencies on past consumption growth is equivalent to sorting them on interest rates: during normal times, high past-consumption-growth currencies appreciate more …
This piece zooms in on the drivers of province-level capital flows in China. They are much the same as those driving aggregate flows: expected rising prices of non-tradables such …
The paper shows that variation in the aggregate U.S. consumption-income ratio is dominated by variation in entrepreneurial income and predicts excess returns on the U.S. stock …