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Financial Stability Policies for Shadow Banking
Adrian, Tobias - C.E.P.R. Discussion Papers - 2015
This paper explores financial stability policies for the shadow banking system. I tie policy options to economic mechanisms for shadow banking that have been documented in the literature. I then illustrate the role of shadow bank policies using three examples: agency mortgage real estate...
Persistent link: https://www.econbiz.de/10011186633
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Credit, Financial Stability, and the Macroeconomy
Taylor, Alan M. - C.E.P.R. Discussion Papers - 2015
Since the 2008 global financial crisis, and after decades of relative neglect, the importance of the financial system and its episodic crises as drivers of macroeconomic outcomes has attracted fresh scrutiny from academics, policy makers, and practitioners. Theoretical advances are following a...
Persistent link: https://www.econbiz.de/10011213304
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Taking Banks to Solow
Gersbach, Hans; Rochet, Jean-Charles; Scheffel, Martin - C.E.P.R. Discussion Papers - 2015
uninformed lending through capital markets spur capital accumulation. The ensuing coupled accumulation rules for household wealth …. Second, negative temporary shocks to household wealth (financial crisis) or negative sectoral production shocks can …
Persistent link: https://www.econbiz.de/10011186631
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The ECB as Lender of Last Resort for Sovereigns in the Euro Area
Buiter, Willem H.; Rahbari, Ebrahim - C.E.P.R. Discussion Papers - 2012
The paper establishes that sovereigns, like banks, need a lender of last resort (LoLR). In the euro area the ECB, with its estimated €3.4 trillion non-inflationary loss absorption capacity, is the only credible sovereign LoLR. The ECB/Eurosystem has been acting as sovereign LoLR through its...
Persistent link: https://www.econbiz.de/10011083551
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Central Banks: Powerful, Political and Unaccountable?
Buiter, Willem H. - C.E.P.R. Discussion Papers - 2014
Central banks’ economic and political importance has grown in advanced economies since the start of the Great Financial Crisis in 2007. An unwillingness or inability of governments to use countercyclical fiscal policy has made monetary policy the only stabilization tool in town. However, much...
Persistent link: https://www.econbiz.de/10011084413
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A Role Model for the Conduct of Fiscal Policy? Experiences from Sweden
Flodén, Martin - C.E.P.R. Discussion Papers - 2012
Sweden was hit by a severe macroeconomic crisis in the early 1990s. GDP fell for three consecutive years in 1991-1993, unemployment increased by 9 percentage points, banks had to be nationalized, and public budget deficits exceeded 10 percent of GDP. The recovery was however quick. GDP growth...
Persistent link: https://www.econbiz.de/10011084359
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Who Gets the Credit? And Does It Matter? Household vs. Firm Lending across Countries
Beck, Thorsten; Büyükkarabacak, Berrak; Rioja, Felix; … - C.E.P.R. Discussion Papers - 2009
While theory predicts different effects of household credit and enterprise credit on the economy, the empirical … growth whereas household credit has no effect; 2) enterprise credit reduces income inequality whereas household credit has no … effect; and 3) household credit is negatively associated with excess consumption sensitivity, while there is no relationship …
Persistent link: https://www.econbiz.de/10005048558
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Adverse Selection of Investment Projects and the Business Cycle
Reichlin, Pietro; Siconolfi, Paolo - C.E.P.R. Discussion Papers - 1997
In an economy where entrepreneurs with unequal ‘abilities’ face alternative investment projects, which differ in their degree of risk and productivity, we analyse the Nash equilibrium contracts arising from a banks-borrowers game in the context of asymmetric information. We show that, for a...
Persistent link: https://www.econbiz.de/10005666565
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The Morning After: Explaining The Slowdown In Japanese Growth In The 1990s
Bayoumi, Tamim - C.E.P.R. Discussion Papers - 2000
This paper uses a VAR to investigate four possible explanations of the extended slump in Japanese economic activity over the 1990s: the absence of bold and consistent fiscal stimulus; the limited room for expansionary monetary policy due to a liquidity trap; overinvestment and debt overhang; and...
Persistent link: https://www.econbiz.de/10005791688
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Optimal Debt Contracts and Moral Hazard Along the Business Cycle
Reichlin, Pietro; Siconolfi, Paolo - C.E.P.R. Discussion Papers - 2000
We analyse the Pareto optimal contracts between lenders and borrowers in a model with asymmetric information. The model is a generalization of the Rothschild-Stiglitz pure adverse selection problem to include moral hazard with limited liability contracts. Entrepreneurs with unequal ``abilities"...
Persistent link: https://www.econbiz.de/10005656342