Publications
Monetary Policy, Bank Competition and Regional Credit Cycles: Evidence from a Quasi-Natural Experiment  - with Nimrod Segev  (link)
             Journal of Corporate Finance, forthcoming
Federal Reserve Private Information and the Stock Market  - with Aeimit Lakdawala  (link)
           Journal of Banking and Finance, Vol 106, pp 34-49, September 2019

Working Papers
Bank Regulation and Monetary Policy Transmission: Evidence from the U.S. States Liberalization - with Aeimit Lakdawala and Raoul Minetti  (PDF)
  • Abstract: This paper studies the impact of geographic banking restrictions on monetary policy transmission. Exploiting the staggered deregulation of U.S. banking from the late 1970s to the early 1990s, we find that interstate deregulation significantly increased the responsiveness of bank lending to monetary shocks. This effect occurred primarily for small and illiquid banks, pointing to a strengthening of the bank lending channel. Changes in bank market structure and loan portfolio composition are unlikely to explain the effect of deregulation. This instead reflects a reduced propensity of small banks affiliated with complex holding companies to insulate borrowers from monetary contractions.
The Deposits Channel Revisited - with Nimrod Segev (PDF)
  • Abstract: Drechsler, Savov, and Schnabl (2017) present a novel reformulation of the bank lending channel of monetary transmission based on market power in deposits markets, which they term the "deposits channel." We perform a successful narrow replication, reconcile their results with a related empirical literature, and control for an alternative theoretical mechanism. Inconsistencies with related studies can be explained by differences in market power measure, monetary policy instrument, and sample period. When controlling for an alternative mechanism, our results suggest that the "deposits channel" only partially explains the response of loan supply to monetary policy.
The International Spillover Effects of US Monetary Policy Uncertainty - with Aeimit Lakdawala and Timothy Moreland  (PDF)
  •  Abstract: An extensive literature studies the international transmission of US monetary policy surprises (shifts in expected path of the policy rate). In this paper we show that changes in uncertainty around the expected path constitute an important additional dimension of spillover effects to global bond yields. In advanced countries, it is the term premium component of yields that responds to uncertainty. We find that this can be explained by an international portfolio balance mechanism. In contrast, for emerging countries it is the expected component of yields that reacts to uncertainty. This can be rationalized from a flight to safety channel. We find heterogeneity in the country-level response to uncertainty only in emerging economies and it is driven by the degree of financial openness. Finally, equity markets in both advanced and emerging countries also respond to US monetary policy uncertainty, but only since the financial crisis.