Arbitraging Covered Interest rate Parity Deviations and Bank Lending
研究覆盖利率平价偏离如何通过银行套利行为影响新兴经济体的贷款供给，发现当套利所需货币稀缺时，银行会减少该货币的贷款。
I propose and test a new channel through which covered interest rate parity (CIP) deviations can affect bank lending in emerging economies. I argue that when CIP deviations exist, banks attempt to arbitrage them. To do so, banks must borrow in a particular currency. When this currency is scarce, bank lending in the currency required to arbitrage decreases, while they use this currency in their arbitrage activities. I test this channel by exploiting differences in the abilities of Peruvian banks to arbitrage CIP deviations. I find evidence that supports the proposed channel.