Barattieri, Alessandro; Eden, Maya; Stevanovic, Dalibor - Centre Interuniversitaire de Recherche en Analyse des … - 2013
We propose a measure of the extent to which a financial sector is connected to the real economy. The Measure of … increase in disconnectedness between the financial sector and the real economy may have dampened the sensitivity of the real … economy to monetary shocks. We present a stylized model that illustrates how interbank trading can reduce the sensitivity of …