Faia, Ester - European Central Bank - 2010
exacerbate the effect of productivity and other macroeconomic shocks on output and inflation. By offering a possibility of …The recent financial crisis has highlighted the limits of the "originate to distribute" model of banking, but its nexus … with the macroeconomy and monetary policy remains unexplored. I build a DSGE model with banks (along the lines of Holmström …