Alexander Raabe (University of Zurich) speaks at the ESM

"Global European banks and dollar (co-)dependence: how housing markets became internationally synchronized"

Joint research work with Torsten Ehlers (Bank for International Settlements) and Mathias Hoffman (University of Zurich) shows that US net capital inflows drive the international synchronization of house prices through their effect on the US dollar funding conditions of non-US global banks. The synchronization is driven by non-US global banks' common but heterogeneous exposure to US dollar funding conditions, not by the common exposure of borrowing countries to non-US global banks. The paper identifies a novel channel of the international transmission of US dollar funding conditions.
  Alexander Raabe is a Senior Research Associate at the University of Zurich. His recent work centers on international capital flows, global banking, and the drivers of the globalization of housing markets and associated financial stabilty risks.

This is an ESM research internal seminar. If you would like to attend, please write an email to ESMresearch@esm.europa.eu