Hedger of last resort: evidence from Brazilian FX interventions, local credit, and global financial cycles
Mostra el registre complet Registre parcial de l'ítem
- dc.contributor.author Gonzalez, Rodrigo Barbone
- dc.contributor.author Khametshin, Dmitry
- dc.contributor.author Peydró, José-Luis
- dc.contributor.author Polo, Andrea, 1983-
- dc.date.accessioned 2019-04-12T09:31:41Z
- dc.date.available 2019-04-12T09:31:41Z
- dc.date.issued 2022-11
- 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.description.sponsorship José-Luis Peydró gratefully acknowledges financial support from the Spanish Ministry of Science, Innovation and Universities, Grant No ECO2015-68136-P, and from the European Research Council, Grant No. 648398.
- dc.format.mimetype application/pdf*
- dc.identifier.uri http://hdl.handle.net/10230/37105
- dc.language.iso catca
- dc.relation.ispartofseries Economic Working Paper Series;1648
- dc.relation.projectID info:eu-repo/grantAgreement/ES/1PE/ECO2015-68136-P
- dc.relation.projectID info:eu-repo/grantAgreement/EC/H2020/648398
- dc.rights.accessRights info:eu-repo/semantics/openAccessca
- 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.title Hedger of last resort: evidence from Brazilian FX interventions, local credit, and global financial cyclesca
- dc.type info:eu-repo/semantics/workingPaperca