0000000000004855

AUTHOR

Iryna Stewen

showing 3 related works from this author

Holes in the Dike: the global savings glut, U.S. house prices and the long shadow of banking deregulation

2015

We explore empirically how capital inflows into the US and financial deregulation within the United States interacted in driving the run-up (and subsequent decline) in US housing prices over the period 1990-2010. To obtain an ex ante measure of financial liberalization, we focus on the history of interstate-banking deregulation during the 1980s, i.e. prior to the large net capital inflows into the US from China and other emerging economies. Our results suggest a long shadow of deregulation: in states that opened their banking markets to out-of-state banks earlier, house prices were more sensitive to capital inflows. We provide evidence that global imbalances were a major positive funding sh…

G28media_common.quotation_subjectHouse pricesjel:F20Monetary economicsjel:F40credit constraintsjel:G21Deregulationjel:G28CREDIT CONSTRAINTSSTATE BANKING DEREGULATIONsavings glut10007 Department of Economics0502 economics and businessddc:330F32G10state banking regulations050207 economicsSAVINGS GLUTEmerging marketsmedia_common050208 finance05 social sciencesHouse prices savings glut global imbalances credit constraints state banking deregulationGlobal imbalancesjel:F32jel:G10330 EconomicsInterest rateShock (economics)Net capital ruleCapital (economics)interstate banking deregulationPortfolioG21house pricesBusinessGeneral Economics Econometrics and FinanceF40state banking deregulationglobal imbalancesF20
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Holes in the Dike: The Global Savings Glut, U.S. House Prices and the Long Shadow of Banking Deregulation

2016

We explore empirically how capital inflows into the US and financial deregulation within the United States interacted in driving the run-up (and subsequent decline) in US housing prices over the period 1990-2010. To obtain an ex ante measure of financial liberalization, we focus on the history of interstate-banking deregulation during the 1980s, i.e. prior to the large net capital inflows into the US from China and other emerging economies. Our results suggest a long shadow of deregulation: in states that opened their banking markets to out-of-state banks earlier, house prices were more sensitive to capital inflows. We provide evidence that global imbalances were a major positive funding sh…

business.industryEconomic policymedia_common.quotation_subjectGlobal imbalancesMonetary economicsInterest rateDeregulationCapital (economics)Net capital ruleRetail bankingPortfolioBusinessEmerging marketsmedia_commonSSRN Electronic Journal
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Growing Like Germany: Local Public Debt, Local Banks, Low Private Investment

2021

The paper uses a panel of more than 1m German firms over 2010-2016, to provide the first firm-bank level evidence of local crowding out for a developed economy characterized by low interest rates and fiscal austerity. Our mechanism relies on two structural features of Germany's banking landscape: the local segmentation of credit markets for small and medium-sized firms (SME) and the role of local public banks in local public finance. Local public banks dominate lending to small and medium firms in Germany and also have an explicit mandate to lend to the local public sector. With spreads on local government debt at all-time lows, local public banks tried to break even, using their market pow…

crowding-outG28outHistoryPolymers and Plasticsmedia_common.quotation_subjectfirmlocal public financeFinancial systemIndustrial and Manufacturing EngineeringECON Department of Economics10007 Department of EconomicsDebtddc:330European imbalancesF32Balance sheetH32Market powerBusiness and International Managementmedia_commonregional banking integrationglobal and intra-European imbalancescrowding outcurrent accountlevel investmentfiscal austeritylocal public banksG28 F21global and intraEuropean imbalancesLocal public financeInvestment (macroeconomics)Crowding outfirm-level investment330 EconomicscrowdingInterest rateAusterityLocal governmentE22F21global and European imbalancesG21global and intraBusinessE40E62SSRN Electronic Journal
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