International Capital Flows and Monetary Policy Spillovers

This dissertation examines the drivers and implications of international capital flows. The overarching motivation is the observation that countries not at the centre of global financial markets are subject to considerable spillovers from centre countries, notably from their monetary policy. I present new empirical evidence on the determinants of the observed patterns of international capital flows and monetary policy spillovers, and study their effect on both financial markets and the real economy. In Chapter 2 I provide evidence on the determinants of a puzzling negative correlation observed between productivity growth and net capital inflows to developing and emerging market economies (EMEs) since 1980. By disaggregating net capital inflows into their gross components, I show that this negative correlation is explained by capital outflows related to purchases of very liquid assets from the fastest growing countries. My results suggest a desire for international portfolio diversification in liquid assets by fast growing countries is driving much of the original puzzle. In the reminder of my dissertation I pivot to study the foreign characteristics that drive international capital flows and monetary policy spillovers, with a particular focus on the role of unconventional monetary policy in the United States (U.S.). In Chapter 3 I show that a significant portion of the heterogeneity in EMEs' asset price adjustment following the quantitative easing operations by the Federal Reserve (the Fed) during 2008-2014 can be explained by the degree of bilateral capital market frictions between these countries and the U.S. This is true even after accounting for capital controls, exchange rate regimes, and domestic monetary policies. Chapter 4, co-authored with Michal Ksawery Popiel, studies unconventional monetary policy in a small open economy, looking specifically at the case of Canada since the global financial crisis. We quantify the effect Canadian unconventional monetary policy shocks had on the real economy, while carefully controlling for and quantifying spillovers from U.S. unconventional monetary policy. Our results indicate that the Bank of Canada's unconventional monetary policy increased Canadian output significantly from 2009-2010, but that spillovers from the Fed's policy were even more important for increasing Canadian output after 2008.

DIGITAL HISTORY: DESIGNING VIRTUAL ENVIRONMENTS THAT SUPPORT CRITICAL THINKING AND IDEA EXCHANGE, MOTIVATE AND ENGAGE USERS

Thesis (Master, Education) -- Queen's University, 2016-08-29 15:56:53.748

IMPACTS OF ENHANCED TEMPERATURE AND SNOW DEPOSITION ON SENESCENCE DATE, VEGETATION COVER, AND CO2 EXCHANGE IN A CANADIAN HIGH ARCTIC MESIC ECOSYSTEM

Arctic regions are expected to experience an increase in both temperature and precipitation over the coming decades, which is likely to impact vegetation dynamics and greenhouse gas exchange. To test this response, an experiment was installed at the Cape Bounty Arctic Watershed Observatory, on Melville Island, NU, in 2008 as part of the International Tundra Experiment (ITEX). Snow fences and open top chambers (OTCs) were used to manipulate snow depth and air temperature, respectively. Unlike most ITEX sites to date, enhanced temperature and snowfall were combined here in a factorial design with eight replicates. As an added control, four plots were established well outside the enhanced snow area. Senescence date was recorded at the end of the season, and at the peak of the growing season a vegetation survey was conducted within each plot in order to determine the total percent cover of each plot, as well as the percent cover of individual species. Carbon dioxide (CO2) exchange was also measured within each plot throughout the growing season. The date of senescence occurred significantly earlier in plots which had not been manipulated in any way, compared to all other treatments for all species. Salix arctica showed the greatest increase in cover over time at the species level. Lichen cover increased significantly in the deepened snow plots, and in general there were significant increases in percent cover in some functional groups over time. During June and into July the net CO2 flux was to the atmosphere. It was not until July 27 that these ecosystems became net carbon sinks. However, warming alone resulted in the ecosystem acting as a significant net carbon sink for the entire growing season. Plots exposed to warming alone were estimated to have removed approximately 19.94 g C m-2 from the atmosphere, whereas all other treatments were very similar to one another and estimated to have added approximately 3.12 g C m-2 to the atmosphere. Active layer depth and soil temperatures suggest that plots within the ambient snow zone may be receiving some additional snow due to their proximity to the fences. CO2 fluxes measured within the outer control plots suggest that the effect of warming alone could lead to this ecosystem being an even stronger net C sink under truly ambient snow conditions.