Essays on Macroeconomics and International Finance
type: CreativeWork
description: This thesis addresses three topics in Macroeconomics and International Finance. Chapter 1 studies welfare implications of international financial integration in the presence of bank funding risks. Unregulated issuance of safe short-term liabilities by financial intermediaries leads to excessive reliance on this form of financing, which increases losses associated with financial crises. First, I show that integration increases the severity of potential financial crises in the countries that receive capital inflows. As a result, integration may reduce welfare for these countries. Second, I show that if macroprudential regulation of the banking sector is chosen by each country in an uncoordinated way, the outcome can be Pareto inefficient so that there is a role for global coordination of such policies. This effect arises because the macroprudential regulation that limits the overissuance of safe liabilities changes the international interest rate. The regulation may have an additional benefit from manipulating the interest rate. Third, the desire to manipulate the interest rate when regulating the local banking sector creates incentives to use two regulatory tools: macroprudential regulation of the banking sector and capital controls. Chapter 2, written jointly with Emi Nakamura and Jon Steinsson, quantifies the importance of long-run risks---persistent shocks to growth rates and uncertainty---in a panel of long-term aggregate consumption data for developed countries. We identify sizable and highly persistent world growth-rate shocks as well as less persistent country-specific growth rate shocks. The world growth-rate shocks capture the productivity speed-up and slow-down many countries experienced in the second half of the 20th century. We also identify large and persistent world shocks to uncertainty. Our world uncertainty process captures the large but uneven rise and fall of volatility that occurred over the course of the 20th century. We find that negative shocks…
abstract: This thesis addresses three topics in Macroeconomics and International Finance. Chapter 1 studies welfare implications of international financial integration in the presence of bank funding risks. Unregulated issuance of safe short-term liabilities by financial intermediaries leads to excessive reliance on this form of financing, which increases losses associated with financial crises. First, I show that integration increases the severity of potential financial crises in the countries that receive capital inflows. As a result, integration may reduce welfare for these countries. Second, I show that if macroprudential regulation of the banking sector is chosen by each country in an uncoordinated way, the outcome can be Pareto inefficient so that there is a role for global coordination of such policies. This effect arises because the macroprudential regulation that limits the overissuance of safe liabilities changes the international interest rate. The regulation may have an additional benefit from manipulating the interest rate. Third, the desire to manipulate the interest rate when regulating the local banking sector creates incentives to use two regulatory tools: macroprudential regulation of the banking sector and capital controls. Chapter 2, written jointly with Emi Nakamura and Jon Steinsson, quantifies the importance of long-run risks---persistent shocks to growth rates and uncertainty---in a panel of long-term aggregate consumption data for developed countries. We identify sizable and highly persistent world growth-rate shocks as well as less persistent country-specific growth rate shocks. The world growth-rate shocks capture the productivity speed-up and slow-down many countries experienced in the second half of the 20th century. We also identify large and persistent world shocks to uncertainty. Our world uncertainty process captures the large but uneven rise and fall of volatility that occurred over the course of the 20th century. We find that negative shocks…
author: Sergeyev, Dmitriy
language: English
keywords: Economics
date published: 2013
date modified: 2026-07-24T01:44:27Z
provider: Columbia University
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: Columbia University

PropertyValue
property ID: DOI
value: 10.7916/D8JQ177N