The global financial cycle

There are significant commonalities between the movements of credit aggregates, credit flows, and asset prices - referred to as the global financial cycle. Helene Rey explains how this cycle is impacted by US monetary policy. Raising interest rates by the Fed will tighten credit in dollar-dependent economies, leading to capital outflows. To withstand such impact, policymakers must employ macroprudential tools to hit their domestic targets.

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Topics:  Financial regulation and banking

Tags:  US, monetary policy, Global financial cycle

Hélène Rey

Lord Bagri Professor of Economics, London Business School and CEPR Vice President and Research Fellow

Events

  • China Economics Summer Institute (CESI)
    17 - 18 August 2019 / Peking University, Beijing / Chinese University of Hong Kong – Tsinghua University Joint Research Center for Chinese Economy, the Institute for Emerging Market Studies at Hong Kong University of Science and Technology, the Guanghua School of Management at Peking University, the Stanford Center on Global Poverty and Development at Stanford University, the School of Economics and Management at Tsinghua University, BREAD, NBER and CEPR
  • CALL FOR PAPER - Vienna Symposium on Foreign Exchange Markets
    19 - 20 August 2019 / Vienna, Palais Coburg / WU Research Institute for Capital Markets (ISK)
  • SALENTO MACRO MEETINGS 2019
    29 - 30 August 2019 / Galatina, Italy /
  • Sustainable Development Conference 2019
    4 - 5 September 2019 / Roma Eventi, Congress Center, Pontificia Università Gregoriana Piazza della Pilotta, 4, Rome, Italy / European Center of Sustainable Development , CIT University
  • CIMS Summer School and Conference 2019
    9 - 14 September 2019 / Guildford, Surrey, UK / The University of Surrey

CEPR Policy Research