Pub Date : 2025-11-19DOI: 10.1016/j.jimonfin.2025.103465
Stefan Avdjiev , Leonardo Gambacorta , Linda S. Goldberg , Stefano Schiaffi
The period after the Global Financial Crisis (GFC) was characterized by a considerable risk migration within global liquidity flows, away from cross-border bank lending towards international bond issuance. We show that the post-GFC shifts in the risk sensitivities of global liquidity flows are related to the tightness of the balance sheet (capital and leverage) constraints faced by international (bank and non-bank) lenders and to the migration of borrowers across funding sources. We document that the risk sensitivity of global liquidity flows is higher when funding is provided by financial intermediaries that are facing greater balance sheet constraints. We also provide evidence that the post-GFC migration of borrowers from cross-border loans to international debt securities was associated with a decline in the risk sensitivity of global liquidity flows to EME borrowers.
{"title":"The risk sensitivity of global liquidity flows: Heterogeneity, evolution and drivers","authors":"Stefan Avdjiev , Leonardo Gambacorta , Linda S. Goldberg , Stefano Schiaffi","doi":"10.1016/j.jimonfin.2025.103465","DOIUrl":"10.1016/j.jimonfin.2025.103465","url":null,"abstract":"<div><div>The period after the Global Financial Crisis (GFC) was characterized by a considerable risk migration within global liquidity flows, away from cross-border bank lending towards international bond issuance. We show that the post-GFC shifts in the risk sensitivities of global liquidity flows are related to the tightness of the balance sheet (capital and leverage) constraints faced by international (bank and non-bank) lenders and to the migration of borrowers across funding sources. We document that the risk sensitivity of global liquidity flows is higher when funding is provided by financial intermediaries that are facing greater balance sheet constraints. We also provide evidence that the post-GFC migration of borrowers from cross-border loans to international debt securities was associated with a decline in the risk sensitivity of global liquidity flows to EME borrowers.</div></div>","PeriodicalId":48331,"journal":{"name":"Journal of International Money and Finance","volume":"161 ","pages":"Article 103465"},"PeriodicalIF":3.3,"publicationDate":"2025-11-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145625364","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-11-19DOI: 10.1016/j.jimonfin.2025.103448
Phornchanok Cumperayot , Casper G. de Vries
The likelihood of extreme FX returns is way higher than predicted by the normal distribution. Theory holds that macroeconomic fundamental shocks drive the exchange rate. If so, are there any extreme linkages between the variables? This article directly links large movements in exchange rates to economic fundamentals by means of multivariate extreme value theory (EVT). We find evidence for such a linkage between large depreciations and increases in money supply, prices, and interest rates. The relationship in the tails between the FX returns and observed monetary variables is documented during currency crisis episodes in Asian and Latin American countries.
{"title":"Extremes in FX returns and fundamentals","authors":"Phornchanok Cumperayot , Casper G. de Vries","doi":"10.1016/j.jimonfin.2025.103448","DOIUrl":"10.1016/j.jimonfin.2025.103448","url":null,"abstract":"<div><div>The likelihood of extreme FX returns is way higher than predicted by the normal distribution. Theory holds that macroeconomic fundamental shocks drive the exchange rate. If so, are there any extreme linkages between the variables? This article directly links large movements in exchange rates to economic fundamentals by means of multivariate extreme value theory (EVT). We find evidence for such a linkage between large depreciations and increases in money supply, prices, and interest rates. The relationship in the tails between the FX returns and observed monetary variables is documented during currency crisis episodes in Asian and Latin American countries.</div></div>","PeriodicalId":48331,"journal":{"name":"Journal of International Money and Finance","volume":"161 ","pages":"Article 103448"},"PeriodicalIF":3.3,"publicationDate":"2025-11-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145694229","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-11-19DOI: 10.1016/j.jimonfin.2025.103476
Gang Chu , Michael Dowling , Xiao Li
Impermanent loss risk is a unique risk related to liquidity provision to cryptocurrency exchange pools in Decentralized Finance (DeFi) protocols. To better understand the characteristics of this emergent risk, we first identify the determinants of impermanent loss risk across 1,715 liquidity pools traded on the two largest exchanges. We then explore how impermanent loss is priced in the cross-section of cryptocurrency liquidity pool expected returns. Through a series of portfolio analyses, we document a significantly positive cross-sectional relationship between impermanent loss risk and expected returns. Drawing on a liquidity-based hypothesis, we further demonstrate how the presence of impermanent loss risk impedes liquidity provision and accelerates liquidity demand. Collectively, our results provide strong evidence supporting the important role of impermanent loss risk in determining cryptocurrency liquidity pool returns.
{"title":"Impermanent loss in cryptocurrency","authors":"Gang Chu , Michael Dowling , Xiao Li","doi":"10.1016/j.jimonfin.2025.103476","DOIUrl":"10.1016/j.jimonfin.2025.103476","url":null,"abstract":"<div><div>Impermanent loss risk is a unique risk related to liquidity provision to cryptocurrency exchange pools in Decentralized Finance (DeFi) protocols. To better understand the characteristics of this emergent risk, we first identify the determinants of impermanent loss risk across 1,715 liquidity pools traded on the two largest exchanges. We then explore how impermanent loss is priced in the cross-section of cryptocurrency liquidity pool expected returns. Through a series of portfolio analyses, we document a significantly positive cross-sectional relationship between impermanent loss risk and expected returns. Drawing on a liquidity-based hypothesis, we further demonstrate how the presence of impermanent loss risk impedes liquidity provision and accelerates liquidity demand. Collectively, our results provide strong evidence supporting the important role of impermanent loss risk in determining cryptocurrency liquidity pool returns.</div></div>","PeriodicalId":48331,"journal":{"name":"Journal of International Money and Finance","volume":"160 ","pages":"Article 103476"},"PeriodicalIF":3.3,"publicationDate":"2025-11-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145579780","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-11-15DOI: 10.1016/j.jimonfin.2025.103474
Junsoo Lee , Md. Towhidul Islam , Margie Tieslau , James E. Payne , Saban Nazlioglu
The Prebisch-Singer (1950, PS) hypothesis posits a long-term decline in the relative prices of primary commodities (natural resources) compared to manufactured goods. This hypothesis carries important implications for resource management, economic growth, and the terms of trade in developing countries. It raises two critical questions that are inherently interlinked: (1) Do relative commodity prices exhibit a negative trend? and (2) Are these prices non-stationary? When addressing these questions, prior analyses have often overlooked the potential influence of cross-correlations among relative commodity prices. In this study, we jointly address these questions while explicitly accounting for cross-correlations. To achieve this, we first employ a dynamic factor model, which effectively captures the shared variations across commodity prices. Additionally, we incorporate the Fourier function to model smooth structural breaks, allowing for the identification of gradual changes in the underlying trend. The combined use of these methods yields significant insights. Our findings provide robust evidence supporting the PS hypothesis over the period 1900–2020, highlighting the persistent and systematic decline in the relative prices of primary commodities.
{"title":"Trends of relative commodity prices with comovements and structural breaks","authors":"Junsoo Lee , Md. Towhidul Islam , Margie Tieslau , James E. Payne , Saban Nazlioglu","doi":"10.1016/j.jimonfin.2025.103474","DOIUrl":"10.1016/j.jimonfin.2025.103474","url":null,"abstract":"<div><div>The Prebisch-<span><span>Singer (1950</span></span>, PS) hypothesis posits a long-term decline in the relative prices of primary commodities (natural resources) compared to manufactured goods. This hypothesis carries important implications for resource management, economic growth, and the terms of trade in developing countries. It raises two critical questions that are inherently interlinked: (1) Do relative commodity prices exhibit a negative trend? and (2) Are these prices non-stationary? When addressing these questions, prior analyses have often overlooked the potential influence of cross-correlations among relative commodity prices. In this study, we jointly address these questions while explicitly accounting for cross-correlations. To achieve this, we first employ a dynamic factor model, which effectively captures the shared variations across commodity prices. Additionally, we incorporate the Fourier function to model smooth structural breaks, allowing for the identification of gradual changes in the underlying trend. The combined use of these methods yields significant insights. Our findings provide robust evidence supporting the PS hypothesis over the period 1900–2020, highlighting the persistent and systematic decline in the relative prices of primary commodities.</div></div>","PeriodicalId":48331,"journal":{"name":"Journal of International Money and Finance","volume":"161 ","pages":"Article 103474"},"PeriodicalIF":3.3,"publicationDate":"2025-11-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145580382","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-11-11DOI: 10.1016/j.jimonfin.2025.103473
Roman Matousek , Stephanos Τ. Papadamou , Panayiotis G. Tzeremes , Nickolaos G. Tzeremes
This study examines the global spillover effects of central banks’ balance sheet expansions on a weekly basis from 2006 to 2023, using a quantile VAR framework and dynamic connectedness analysis across five major central banks [Federal Reserve (Fed), European Central Bank (ECB), Bank of England (BoE), Bank of Canada (BoC), and Bank of Australia (RBA)], the relevant ten-year sovereign bonds, and the VIX index. The analysis reveals a pronounced U-shaped pattern in systemic connectedness, with highest spillovers during extreme market conditions (low and high quantiles) and lower connectedness in normal periods. Ten-year sovereign bonds emerge as the primary contributors of forecast error variance across all regimes, while central banks—particularly the Fed and BoE—act as net absorbers of spillovers especially during crisis periods. The tails show the most monetary policy synchrony, suggesting globally intertwined reactions under stress and idiosyncratic actions under calm. Structural break and heatmap analyses across the Global Financial Crisis (GFC), Eurozone crisis, and COVID-19 confirm the latter. These findings underscore the need for policymakers to consider cross-border transmission effects and rethink the presumed domestic containment of unconventional monetary policy tools.
{"title":"From independence to interdependence: The global connectedness of central banks’ balance sheet total assets","authors":"Roman Matousek , Stephanos Τ. Papadamou , Panayiotis G. Tzeremes , Nickolaos G. Tzeremes","doi":"10.1016/j.jimonfin.2025.103473","DOIUrl":"10.1016/j.jimonfin.2025.103473","url":null,"abstract":"<div><div>This study examines the global spillover effects of central banks’ balance sheet expansions on a weekly basis from 2006 to 2023, using a quantile VAR framework and dynamic connectedness analysis across five major central banks [Federal Reserve (Fed), European Central Bank (ECB), Bank of England (BoE), Bank of Canada (BoC), and Bank of Australia (RBA)], the relevant ten-year sovereign bonds, and the VIX index. The analysis reveals a pronounced U-shaped pattern in systemic connectedness, with highest spillovers during extreme market conditions (low and high quantiles) and lower connectedness in normal periods. Ten-year sovereign bonds emerge as the primary contributors of forecast error variance across all regimes, while central banks—particularly the Fed and BoE—act as net absorbers of spillovers especially during crisis periods. The tails show the most monetary policy synchrony, suggesting globally intertwined reactions under stress and idiosyncratic actions under calm. Structural break and heatmap analyses across the Global Financial Crisis (GFC), Eurozone crisis, and COVID-19 confirm the latter. These findings underscore the need for policymakers to consider cross-border transmission effects and rethink the presumed domestic containment of unconventional monetary policy tools.</div></div>","PeriodicalId":48331,"journal":{"name":"Journal of International Money and Finance","volume":"160 ","pages":"Article 103473"},"PeriodicalIF":3.3,"publicationDate":"2025-11-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145579699","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-11-10DOI: 10.1016/j.jimonfin.2025.103472
Joscha Beckmann , Robert L. Czudaj
This paper focuses on the uncertainty effect on consumer price inflation based on a panel of 82 advanced, emerging, and developing economies studied over a sample period running from 1995 to 2022. In contrast to the previous literature, we particularly control for the role of monetary policy credibility by considering the monetary control classification of Cobham (2021) and by measuring the degree of anchoring of survey inflation expectations. We argue that the interpretation of uncertainty as a negative demand shock is appealing from a theoretical perspective but is unlikely to reflect uncertainty dynamics for countries with high inflation and/or low monetary policy credibility. We find that higher uncertainty boosts inflation. However, this effect is significantly reduced (or even eliminated) by both a strong degree of monetary control and a strong anchoring of inflation expectations, illustrating that both factors are of key importance for the propagation of uncertainty shocks.
{"title":"Uncertainty shocks and inflation: The role of credibility and expectation anchoring","authors":"Joscha Beckmann , Robert L. Czudaj","doi":"10.1016/j.jimonfin.2025.103472","DOIUrl":"10.1016/j.jimonfin.2025.103472","url":null,"abstract":"<div><div>This paper focuses on the uncertainty effect on consumer price inflation based on a panel of 82 advanced, emerging, and developing economies studied over a sample period running from 1995 to 2022. In contrast to the previous literature, we particularly control for the role of monetary policy credibility by considering the monetary control classification of <span><span>Cobham (2021)</span></span> and by measuring the degree of anchoring of survey inflation expectations. We argue that the interpretation of uncertainty as a negative demand shock is appealing from a theoretical perspective but is unlikely to reflect uncertainty dynamics for countries with high inflation and/or low monetary policy credibility. We find that higher uncertainty boosts inflation. However, this effect is significantly reduced (or even eliminated) by both a strong degree of monetary control and a strong anchoring of inflation expectations, illustrating that both factors are of key importance for the propagation of uncertainty shocks.</div></div>","PeriodicalId":48331,"journal":{"name":"Journal of International Money and Finance","volume":"160 ","pages":"Article 103472"},"PeriodicalIF":3.3,"publicationDate":"2025-11-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145579700","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-11-10DOI: 10.1016/j.jimonfin.2025.103471
Kefei Han , Manyu Kong , Qiuhua Xu , Jiayi Zhou
This study employs the Tail-Event driven NETwork (TENET) method to construct contagion networks of exchange rate tail risks among 40 major global currencies over the period 2010–2023. Based on these networks, we develop indicators to measure systemic risk and analyze their dynamic evolution. The results reveal that, during periods of extreme events, the contagion level among major currencies escalates markedly, demonstrating cyclic patterns. Moreover, compared with emerging economies, developed economies tend to exhibit a higher level of exchange rate tail-risk emission but a lower level of risk reception, with a discernible synchronization between risk reception and emission. This study further investigates how exchange rate tail-risk contagion influences international trade. The analysis shows that such contagion adversely affects both imports and exports, with a more pronounced impact on imports. The reduction in trade volume due to exchange rate tail risk is mainly observed between developed and emerging economies, as well as between member and non-member countries of specific economic cooperation organizations. These results provide empirical evidence of the trade-related consequences of exchange rate tail-risk contagion and highlight the importance of mitigating such contagion and enhancing financial resilience in international trade.
{"title":"Exchange rate contagion and international trade: Insights from the TENET method","authors":"Kefei Han , Manyu Kong , Qiuhua Xu , Jiayi Zhou","doi":"10.1016/j.jimonfin.2025.103471","DOIUrl":"10.1016/j.jimonfin.2025.103471","url":null,"abstract":"<div><div>This study employs the Tail-Event driven NETwork (TENET) method to construct contagion networks of exchange rate tail risks among 40 major global currencies over the period 2010–2023. Based on these networks, we develop indicators to measure systemic risk and analyze their dynamic evolution. The results reveal that, during periods of extreme events, the contagion level among major currencies escalates markedly, demonstrating cyclic patterns. Moreover, compared with emerging economies, developed economies tend to exhibit a higher level of exchange rate tail-risk emission but a lower level of risk reception, with a discernible synchronization between risk reception and emission. This study further investigates how exchange rate tail-risk contagion influences international trade. The analysis shows that such contagion adversely affects both imports and exports, with a more pronounced impact on imports. The reduction in trade volume due to exchange rate tail risk is mainly observed between developed and emerging economies, as well as between member and non-member countries of specific economic cooperation organizations. These results provide empirical evidence of the trade-related consequences of exchange rate tail-risk contagion and highlight the importance of mitigating such contagion and enhancing financial resilience in international trade.</div></div>","PeriodicalId":48331,"journal":{"name":"Journal of International Money and Finance","volume":"160 ","pages":"Article 103471"},"PeriodicalIF":3.3,"publicationDate":"2025-11-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145526520","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-11-08DOI: 10.1016/j.jimonfin.2025.103466
Jian Chen , Yufeng Han , Guohao Tang , Yifeng Zhu
This paper examines monthly returns from over 48,120 stocks across 36 countries/regions, employing an iterative two-step LASSO methodology to identify key factors in global markets. The result is a novel global factor model that incorporates factors such as market dynamics, profit growth, quality, momentum, investment, size, and debt issuance. This model outperforms existing approaches by providing a superior explanation of global asset pricing anomalies and achieving lower average pricing errors. A distinguishing feature of our model is its efficacy in explicating anomalies in local markets, diverging from traditional models that typically confine their scope to local market dynamics. Overall, this research highlights the potential of machine learning-based frameworks in developing a more comprehensive and robust global factor model for international asset pricing.
{"title":"Taming the global factor zoo","authors":"Jian Chen , Yufeng Han , Guohao Tang , Yifeng Zhu","doi":"10.1016/j.jimonfin.2025.103466","DOIUrl":"10.1016/j.jimonfin.2025.103466","url":null,"abstract":"<div><div>This paper examines monthly returns from over 48,120 stocks across 36 countries/regions, employing an iterative two-step LASSO methodology to identify key factors in global markets. The result is a novel global factor model that incorporates factors such as market dynamics, profit growth, quality, momentum, investment, size, and debt issuance. This model outperforms existing approaches by providing a superior explanation of global asset pricing anomalies and achieving lower average pricing errors. A distinguishing feature of our model is its efficacy in explicating anomalies in local markets, diverging from traditional models that typically confine their scope to local market dynamics. Overall, this research highlights the potential of machine learning-based frameworks in developing a more comprehensive and robust global factor model for international asset pricing.</div></div>","PeriodicalId":48331,"journal":{"name":"Journal of International Money and Finance","volume":"160 ","pages":"Article 103466"},"PeriodicalIF":3.3,"publicationDate":"2025-11-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145579698","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The global shift toward renewable energy is accelerating, driven by climate policies, technological advances, and rising investor interest. However, concerns remain about banks’ ability to support this transition while managing risks and maintaining financial stability. This paper examines the relationship between renewable energy expansion and bank risk, considering cross-country differences in financial systems and regulations. Using data from 27 economies and a fixed effects model, we assess the impact of renewable energy growth on market-based risk indicators, specifically Distance to Default (DD) and Distance to Capital (DC). Our findings indicate that global expansion of renewable energy enhances banking stability. In developed economies, it boosts financial resilience, while in developing ones, it paradoxically raises banking risk, reducing DD and DC. A robustness check with public investment reveals that higher public spending decreases DD and DC in developed countries, signaling greater risk. In contrast, in developing economies, public investment helps stabilize banking risk. These results highlight the complex relationship between renewable energy policies and bank risk, shaped by differing economic and regulatory settings. Additional analysis supports our hypotheses, indicating that the energy transition has a significant impact on bank risk and underscores the need for tailored financial policies to support renewable energy financing while advancing carbon neutrality.
{"title":"A global assessment of banks’ capacity to support the energy transition: Evidence from developed and emerging markets","authors":"Marcelo Martins Tachy , Gláucia Fernandes Vasconcelos , Layla dos Santos Mendes","doi":"10.1016/j.jimonfin.2025.103468","DOIUrl":"10.1016/j.jimonfin.2025.103468","url":null,"abstract":"<div><div>The global shift toward renewable energy is accelerating, driven by climate policies, technological advances, and rising investor interest. However, concerns remain about banks’ ability to support this transition while managing risks and maintaining financial stability. This paper examines the relationship between renewable energy expansion and bank risk, considering cross-country differences in financial systems and regulations. Using data from 27 economies and a fixed effects model, we assess the impact of renewable energy growth on market-based risk indicators, specifically Distance to Default (DD) and Distance to Capital (DC). Our findings indicate that global expansion of renewable energy enhances banking stability. In developed economies, it boosts financial resilience, while in developing ones, it paradoxically raises banking risk, reducing DD and DC. A robustness check with public investment reveals that higher public spending decreases DD and DC in developed countries, signaling greater risk. In contrast, in developing economies, public investment helps stabilize banking risk. These results highlight the complex relationship between renewable energy policies and bank risk, shaped by differing economic and regulatory settings. Additional analysis supports our hypotheses, indicating that the energy transition has a significant impact on bank risk and underscores the need for tailored financial policies to support renewable energy financing while advancing carbon neutrality.</div></div>","PeriodicalId":48331,"journal":{"name":"Journal of International Money and Finance","volume":"160 ","pages":"Article 103468"},"PeriodicalIF":3.3,"publicationDate":"2025-11-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145526119","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-11-07DOI: 10.1016/j.jimonfin.2025.103469
Jean Barthélemy , Paul Gardin , Benoit Nguyen
The rapid growth of stablecoins–crypto-assets aimed at maintaining a stable value–has generated a sizable demand for short-term dollar-denominated assets. Stablecoin issuers hold these assets to back their tokens and manage their peg. This paper shows that an increase in the demand for stablecoin tokens caused additional commercial paper (CP) issuance, when tokens were backed by CP. This suggests CP issuers catered to the demand emanating from stablecoins’ backing. Our results highlight a new and more general link between crypto-assets, conventional financial markets, and short-term debt issuers.
{"title":"Stablecoins and short-term funding markets","authors":"Jean Barthélemy , Paul Gardin , Benoit Nguyen","doi":"10.1016/j.jimonfin.2025.103469","DOIUrl":"10.1016/j.jimonfin.2025.103469","url":null,"abstract":"<div><div>The rapid growth of stablecoins–crypto-assets aimed at maintaining a stable value–has generated a sizable demand for short-term dollar-denominated assets. Stablecoin issuers hold these assets to back their tokens and manage their peg. This paper shows that an increase in the demand for stablecoin tokens caused additional commercial paper (CP) issuance, when tokens were backed by CP. This suggests CP issuers catered to the demand emanating from stablecoins’ backing. Our results highlight a new and more general link between crypto-assets, conventional financial markets, and short-term debt issuers.</div></div>","PeriodicalId":48331,"journal":{"name":"Journal of International Money and Finance","volume":"161 ","pages":"Article 103469"},"PeriodicalIF":3.3,"publicationDate":"2025-11-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145625363","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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