Implication of global financial cycle on emerging market economies: Evidence from India

IF 1.7 Q3 MANAGEMENT

IIMB Management Review Pub Date : 2025-06-01 DOI:10.1016/j.iimb.2025.100575

Vrinda Gupta , Amlendu Dubey

引用次数: 0

Abstract

In this paper, we examine how the global financial cycle is translated into domestic financial cycle across different financial assets comprising equity prices, credit, and leverage for India. Using quarterly data from 1990 to 2021, we find that ‘risk-taking channel’ transfers global financial cycle into domestic economy which manifests itself through equity prices, credit, and leverage; however, Indian housing cycle seems resilient to the global housing cycle. In this context, macroprudential policies might be employed to limit the risk-taking channel and hence reduce palpability of domestic economy to the global financial cycle.

查看原文本刊更多论文

全球金融周期对新兴市场经济体的影响：来自印度的证据

在本文中，我们研究了全球金融周期如何通过不同的金融资产（包括股票价格、信贷和杠杆）转化为印度的国内金融周期。利用1990 - 2021年的季度数据，我们发现“风险承担渠道”将全球金融周期转移到国内经济，并通过股票价格、信贷和杠杆表现出来；然而，印度房地产周期似乎对全球房地产周期具有弹性。在这种情况下，可以采用宏观审慎政策来限制风险承担渠道，从而降低国内经济对全球金融周期的影响。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

IIMB Management Review MANAGEMENT-

CiteScore

3.20

自引率

5.90%

发文量

审稿时长

68 days

期刊介绍： IIMB Management Review (IMR) is a quarterly journal brought out by the Indian Institute of Management Bangalore. Addressed to management practitioners, researchers and academics, IMR aims to engage rigorously with practices, concepts and ideas in the field of management, with an emphasis on providing managerial insights, in a reader friendly format. To this end IMR invites manuscripts that provide novel managerial insights in any of the core business functions. The manuscript should be rigorous, that is, the findings should be supported by either empirical data or a well-justified theoretical model, and well written. While these two requirements are necessary for acceptance, they do not guarantee acceptance. The sole criterion for publication is contribution to the extant management literature.Although all manuscripts are welcome, our special emphasis is on papers that focus on emerging economies throughout the world. Such papers may either improve our understanding of markets in such economies through novel analyses or build models by taking into account the special characteristics of such economies to provide guidance to managers.