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What characterizes foreign direct investment in Paraguay? This study examines the evolution of foreign direct investment between 2008 and 2024, highlighting greater diversification in both the origin of capital and the sectors receiving investment. The findings underscore the contribution of foreign direct investment to Paraguay’s economic growth and its integration into international markets.
This working paper examines how monetary policy affects bank deposits in emerging and developing economies. Using data from more than 1,600 banks across 52 countries between 1996 and 2021, the authors find that higher policy interest rates are associated with slower deposit growth and wider spreads between policy rates and deposit remuneration. The findings highlight the importance of the deposit channel as a key mechanism of monetary policy transmission and underscore the need to pay greater attention to the liability side of banks’ balance sheets in both research and policymaking.
When the U.S. Federal Reserve changes interest rates, which banks transmit those shocks more strongly to the rest of the world? Conventional wisdom suggests foreign-owned banks should be more sensitive because they belong to multinational banking groups. Our evidence, based on more than 2,000 banks across 116 countries, suggests a different conclusion: ownership alone is not a reliable predictor of how international monetary shocks affect bank lending.
Geopolitical risk not only affects bank lending; it also weakens deposit growth, limiting banks’ ability to support economic activity. The findings highlight an increasingly important source of vulnerability for financial systems in emerging economies.
New Working Paper FLAR Is the International Bank Lending Channel Driven by Ownership? Evidence from Local Banks and Foreign Subsidiaries Carlos Giraldo, Iader Giraldo, Jose E. Gomez-Gonzalez, Jorge M. Uribe June 2026 Read Working Paper
Press release Press Release: FLAR Celebrates the XXI Annual Economic Studies Conference in Cartagena Fiscal-Monetary Interactions and Macro-Financial Vulnerabilities in a Fragmenting World See press release
Press release FLAR Board of Directors Re-elects José Darío Uribe as Executive President for the 2026–2029 Term See press release
Carlos Giraldo, Iader Giraldo, Jose E. Gomez-Gonzalez, and Jorge M. Uribe have published the study “Bank capital adjustment to public debt shocks: The role of institutions in emerging markets”, which examines how public debt shocks affect banks’ capital ratios and how these responses vary depending on institutional and regulatory quality across countries. The findings highlight the importance of strong regulatory frameworks in supporting financial stability, particularly in emerging markets.
FLAR and ASEAN+3 Macroeconomic Research Office reaffirm their commitment to strengthening global resilience through closer inter-regional cooperation, highlighting the importance of macroeconomic surveillance and financial connectivity for a more stable and inclusive system.
In this new blog post, we present the main findings of our recent working paper, “Climate Hazards Meet Overpriced Cities: Linking Environmental Risks to Real Estate Markets Across the Globe”, in which we analyze how climate risks influence housing affordability worldwide, using the price-to-income (PTI) ratio as a key measure.