Akinci, Ozge; Benigno, Gianluca; Del Negro, Marco; … - 2020
We introduce the concept of a financial stability real interest rate using a macroeconomic banking model with an … occasionally binding financing constraint, as in Gertler and Kiyotaki (2010). The financial stability interest rate, r**, is the … threshold interest rate that triggers the constraint being binding. Increasing imbalances in the financial sector, measured by …