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The macroeconomic effects of portfolio equity inflows / by Nick Sander.FB3-5/2023-31E-PDF

"I provide evidence that portfolio equity inflows can have expansionary effects on GDP and inflation if not offset by monetary policy. I use a shift-share instrument to estimate equity inflows based on plausibly exogenous timing of inflows into mutual funds with heterogeneous country portfolios. For countries with fixed exchange rates, GDP rises for at least two years following an exogenous inflow with a peak effect of 0.8 percent after 18 months. This is driven by rises in investment and exports, where the latter response is inconsistent with standard expenditure switching channel mechanisms. Non-fixing countries maintain GDP roughly at the same pre-shock levels but achieve this with higher interest rates"--Abstract.

Permanent link to this Catalogue record:
publications.gc.ca/pub?id=9.927510&sl=0

Publication information
Department/Agency
  • Bank of Canada, issuing body.
TitleThe macroeconomic effects of portfolio equity inflows / by Nick Sander.
Series title
  • Staff working paper = Document de travail du personnel, 1701-9397 ; 2023-31
Publication typeMonograph - View Master Record
Language[English]
FormatDigital text
Electronic document
Note(s)
  • "Last updated: June 9, 2023."
  • Includes bibliographical references.
  • Includes abstract in French.
Publishing information
  • [Ottawa] : Bank of Canada = Banque du Canada, 2023.
  • ©2023
Author / Contributor
  • Sander, Nick, author.
Description1 online resource (ii, 67 pages) : charts.
Catalogue number
  • FB3-5/2023-31E-PDF
Subject terms
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