Quotation Kauko, Karlo, Punzi, Maria Teresa. 2015. Testing the global banking glut hypothesis. Journal of Financial Stability 19 S. 128-151.




This paper presents VAR results on the recent economic history of the U.S. and focuses on the dependence of U.S. macrofinancial variables on international capital flows. Both gross and net flows are included in the analysis. The results indicate that cross-border funding has affected the build-up in the U.S. housing market irrespective of how these flows are defined and measured. Both the savings glut hypothesis and the banking glut hypothesis are supported by these findings. However, net banking flows appear to explain the higher volatility in the increase in house prices as well as the mortgage loan boom.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Journal of Financial Stability
Citation Index SSCI
WU-Journal-Rating new FIN-A, VW-C, WH-B
Language English
Title Testing the global banking glut hypothesis
Volume 19
Year 2015
Page from 128
Page to 151
Reviewed? Y
URL http://www.sciencedirect.com/science/article/pii/S1572308915000224
DOI http://dx.doi.org/10.1016/j.jfs.2015.02.005
JEL F32; F33; F34


Punzi, Maria Teresa (Former researcher)
Kauko, Karlo (Finland)
Department of Economics (Kubin) (Details)
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