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 2024-11-14T10:09:44Z
- dc.date.available 2024-11-14T10:09:44Z
- dc.date.issued 2018-10-01
- dc.date.modified 2024-11-14T10:06:17Z
- dc.description.abstract We show that FX interventions attenuate global financial cycle (GFC)'s spillovers. We exploit GFC shocks and Brazilian central bank interventions in FX derivatives using three matched administrative registers: credit, foreign credit to banks, and employer-employee. After U.S. Taper Tantrum (followed by Emerging Markets FX turbulence), Brazilian banks with more foreign debt cut credit supply, thereby reducing firm-level employment. A subsequent large policy intervention supplying derivatives against FX risks-hedger of last resort-halves the negative effects. A 2008-2015 panel exploiting GFC shocks and FX interventions confirms these results and the hedging channel. However, the policy entails fiscal and moral hazard costs.
- dc.format.mimetype application/pdf*
- dc.identifier https://econ-papers.upf.edu/ca/paper.php?id=1648
- dc.identifier.citation
- dc.identifier.uri http://hdl.handle.net/10230/44715
- 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.accessRights info:eu-repo/semantics/openAccess
- dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
- 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.title Hedger of last resort: Evidence from Brazilian FX interventions, local credit, and global financial cycles
- dc.title.alternative
- dc.type info:eu-repo/semantics/workingPaper