Cross-border Spillovers: How US Financial Conditions affect M&As Around the World

The views expressed in this paper are those of the authors and do not necessarily represent the views of the IMF, its Executive Board, IMF management, or the National Bureau of Economic Research. We thank Sanhitha Jugulum for superb research assistance, without which the paper would not have been possible. We also thank Rahul Chauhan and Ese Onokpasa for excellent data and editing support. We thank Giovanni Dell’Ariccia, Jonathan Ostry, Pierre-Olivier Gourinchas, Sebnem Kalemli-Ozcan, Divya Kirti, Karen Lewis, Rui Mano, Helene Rey, and others for helpful comments, and Douglas Diamond and Yunzhi Hu for valuable discussions. We appreciate helpful comments from participants at the 2023 ASSA meetings, 2023 CEPR ESSIM, BIS-BOE-BdF MFR 2022 Spillovers Conference, IMF lightning sessions, and Ted Lilie-Reisinger workshop on International Finance.

• May 18, 2023