Csabafi, Tamas Z.Gillman, MaxNaraidoo, Ruthira2020-06-122019-12Csabafi, T.Z., Gillman, M. & Naraidoo, R. 2019, 'International business cycle and financial intermediation', Journal of Money, Credit and Banking, vol. 51, no. 8, pp. 2293-2303.0022-2879 (print)1538-4616 (online)10.1111/jmcb.12580http://hdl.handle.net/2263/74978The paper extends a standard two‐country international real business cycle model to include financial intermediation by banks of loans and government bonds. The paper contributes an explanation for both the United States relative to the Euro‐area, and the United States relative to China, of cross‐country correlations of loan rates, deposit rates, and the loan premia. It shows a type of financial retrenchment for the United States relative to both Europe and China following a negative bank productivity shock, such as during the 2008 crisis. After 2008, results suggest that the Euro‐area has been more financially integrated with the United States, and China less financially integrated.en© 2018 The Ohio State University. This is the pre-peer reviewed version of the following article : 'International business cycle and financial intermediation', Journal of Money, Credit and Banking, vol. 51, no. 8, pp. 2293-2303, 2019. doi : 10.1111/jmcb.12580. The definite version is available at : https://onlinelibrary.wiley.com/journal/15384616.International real business cyclesFinancial retrenchmentCredit spreadBank productivity2008 crisisEuro‐areaChinaPostprint Article