Finance Seminar with Bo Becker, Stockholm School of Economics

Upcoming Finance Seminar with Bo Becker, Stockholm School of Economics

 
Friday, November 14, 2014 - 11:00 to 12:15

The Department of Finance is proud to announce the upcoming seminar with Bo Becker, Stockholm School of Economics

Bo Becker will present: 

PDF iconFinancial Repression in the European Sovereign Debt Crisis

Authors:

Bo Becker, Stockholm School of Economics
Victoria Ivashina, Harvard University and NBER

Abstract:

By the end of 2013, the share of government debt held by the domestic banking sectors of Eurozone countries was more than twice that held in 2007. Consistent with financial repression, we show that increased government bond holdings generated a crowding out of corporate lending. Firms were more likely to substitute loans with bonds when local banks owned more domestic sovereign debt and when that debt was risky. We show that direct government ownership as well as government influence through banks’ boards of directors are among the channels used to exercise financial repression.

 
The page was last edited by: Department of Finance // 11/04/2014