The Dollar, Bank Leverage, and Deviations from Covered Interest Parity

A-Tier
Journal: American Economic Review: Insights
Year: 2019
Volume: 1
Issue: 2
Pages: 193-208

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We document a triangular relationship in that a stronger dollar goes hand in hand with larger deviations from covered interest parity (CIP) and contractions of cross-border bank lending in dollars. We argue that underpinning the triangle is the role of the dollar as a key barometer of risk-taking capacity in global capital markets.

Technical Details

RePEc Handle
repec:aea:aerins:v:1:y:2019:i:2:p:193-208
Journal Field
General
Author Count
4
Added to Database
2026-01-24