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Hedger of last resort: evidence from Brazilian FX interventions, local credit, and global financial cycles

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dc.contributor.author Barbone Gonzalez, Rodrigo
dc.contributor.author Khametshin, Dmitry
dc.contributor.author Peydró, José-Luis
dc.contributor.author Polo, Andrea
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
dc.date.accessioned 2020-05-25T09:26:53Z
dc.date.available 2020-05-25T09:26:53Z
dc.date.issued 2018-10-01
dc.identifier https://econ-papers.upf.edu/ca/paper.php?id=1648
dc.identifier.uri http://hdl.handle.net/10230/44715
dc.description.abstract We show that local central bank policies attenuate global financial cycle (GFC) s spillovers. For identification, we exploit GFC shocks and Brazilian interventions in FX derivatives using three matched administrative registers: credit, foreign credit flows to banks, and employer-employee. After U.S. Federal Reserve Taper Tantrum (followed by strong Emerging Markets FX depreciation and volatility increase), Brazilian banks with larger ex-ante reliance on foreign debt strongly cut credit supply, thereby reducing firm-level employment. However, a large FX intervention program supplying derivatives against FX risks hedger of last resort halves the negative effects. Finally, a 2008-2015 panel exploiting GFC shocks and local related policies confirm these results.
dc.format.mimetype application/pdf
dc.language.iso eng
dc.relation.ispartofseries Economics and Business Working Papers Series; 1648
dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.title Hedger of last resort: evidence from Brazilian FX interventions, local credit, and global financial cycles
dc.type info:eu-repo/semantics/workingPaper
dc.date.modified 2020-05-25T09:25:55Z
dc.subject.keyword foreign exchange
dc.subject.keyword monetary policy
dc.subject.keyword central bank
dc.subject.keyword bank credit
dc.subject.keyword hedging
dc.subject.keyword Finance and Accounting
dc.subject.keyword Macroeconomics and International Economics
dc.subject.keyword Labour, Public, Development and Health Economics
dc.rights.accessRights info:eu-repo/semantics/openAccess

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