On Wednesday, 23 September, Friederike Niepmann (Federal Reserve Board) will present at the brown bag seminar.
Friederike will present a paper titled “The Dollar Channel of Monetary Policy Transmission" joint work with Ralf R. Meisenzahl and Tim Schmidt-Eisenlohr.
Abstract: This paper documents a new dollar channel that transmits monetary policy across borders. Exploiting unique features of the syndicated loan market for identification, we show that changes in the euro-dollar exchange rate around ECB monetary policy announcements that are orthogonal to simultaneous changes in euro-area interest rates and stock prices affect U.S. leveraged loan spreads. Specifically, in response to dollar appreciation, investors require higher compensation for risk, and borrowing costs for U.S. firms increase. These findings imply a causal link between the U.S. dollar and investors’ risk appetite.
Information: The SAFE Brown Bag Seminar Series is for researchers affiliated with SAFE. Organized by the Leibniz Institute SAFE, the series provides an informal platform for presenting and discussing ongoing research and regularly features invited external speakers. The meeting takes place in the SAFE Common Room on Wednesday, 12.00-13.00.
Contact: info@safe-frankfurt.de
