Using the unbalanced panel data of 160 countries from 1970 to 2007,we employ inflation and the budget deficit as proxies for monetary policy and fiscal policy,respectively,and study whether financial globalization has...Using the unbalanced panel data of 160 countries from 1970 to 2007,we employ inflation and the budget deficit as proxies for monetary policy and fiscal policy,respectively,and study whether financial globalization has discipline effects on these macroeconomic policies.The empirical results in our study suggest a significant discipline effect of financial globalization on monetary policy during the entire sample period,which is robust both to de jure and to de facto measures of financial openness.Our sub-sample investigations demonstrate that financial globalization reduces inflation only in higher-middle-income and high-income countries,and when financial globalization is scaled by the proportion of a country’s foreign assets and liabilities to its GDP,the discipline is evident only after 1988.Nevertheless,we do not demonstrate any evidence of financial globalization’s discipline effect on fiscal policy.The empirical results indicate that financial globalization even increases the budget deficit in certain countries and periods.展开更多
Empirical research has shown that there were international spillover effects from the U.S. monetary policy to output level, net exports and price levels of each country, and the impact on prices in each country was of...Empirical research has shown that there were international spillover effects from the U.S. monetary policy to output level, net exports and price levels of each country, and the impact on prices in each country was of synchronous effect. The structural impulse response analysis showed that U.S. monetary policy could improve U.S. income and payment without damaging U.S. economic growth, but the shocks negatively affected the economic growth in the rest of the world. Hence, it's important to pay close attention to the moral risks of U.S. monetary policy to evade the global shocks caused by the "benefit-itself-at-the-expense-of-others" polices of the American government. Besides these findings, U.S. monetary policy shocks strongly affect China's trade surplus fluctuations. Based on this, we propose that the approaches of balancing China's current account could be explored efficiently from the perspective of monetary policy.展开更多
文摘Using the unbalanced panel data of 160 countries from 1970 to 2007,we employ inflation and the budget deficit as proxies for monetary policy and fiscal policy,respectively,and study whether financial globalization has discipline effects on these macroeconomic policies.The empirical results in our study suggest a significant discipline effect of financial globalization on monetary policy during the entire sample period,which is robust both to de jure and to de facto measures of financial openness.Our sub-sample investigations demonstrate that financial globalization reduces inflation only in higher-middle-income and high-income countries,and when financial globalization is scaled by the proportion of a country’s foreign assets and liabilities to its GDP,the discipline is evident only after 1988.Nevertheless,we do not demonstrate any evidence of financial globalization’s discipline effect on fiscal policy.The empirical results indicate that financial globalization even increases the budget deficit in certain countries and periods.
文摘Empirical research has shown that there were international spillover effects from the U.S. monetary policy to output level, net exports and price levels of each country, and the impact on prices in each country was of synchronous effect. The structural impulse response analysis showed that U.S. monetary policy could improve U.S. income and payment without damaging U.S. economic growth, but the shocks negatively affected the economic growth in the rest of the world. Hence, it's important to pay close attention to the moral risks of U.S. monetary policy to evade the global shocks caused by the "benefit-itself-at-the-expense-of-others" polices of the American government. Besides these findings, U.S. monetary policy shocks strongly affect China's trade surplus fluctuations. Based on this, we propose that the approaches of balancing China's current account could be explored efficiently from the perspective of monetary policy.
