Monetary Policy Shocks and Portfolio Choice

Research, Preprint OPEN
Fratzscher, Marcel; Saborowski, Christian; Straub, Roland; (2009)
  • Publisher: Frankfurt a. M.: European Central Bank (ECB)
  • Subject: trade balance | USA | E52 | F32 | Capital flows | Portfolio Choice | United States | vector auto regressions | G1 | sign restrictions | F4 | monetary policy | asset prices | Kapitalmobilit├Ąt | Portfolio-Management | Asset Prices, capital flows, monetary policy, portfolio choice, sign restrictions., trade balance, United States, vector auto regressions | Handelsbilanz | VAR-Modell | Geldpolitik
    • ddc: ddc:330

The paper shows that monetary policy shocks exert a substantial effect on the size and composition of capital flows and the trade balance for the United States, with a 100 basis point easing raising net capital inflows and lowering the trade balance by 1% of GDP, and ex... View more
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