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External Imbalances and Financial Crises

Taylor, Alan M. - 2012

arena of the afflicted countries, attributing the problems to financial systems where risks originated in excessive credit … with evidence. Of the two, the credit boom explanation stands out as the most plausible predictor of financial crises since … episodes of financial distress compared to direct indicators like credit drawn from the financial system itself …

Persistent link: https://www.econbiz.de/10012460056

Financial Dampening

Wieland, Johannes F. - 2016

We propose a novel mechanism, "financial dampening," whereby loan retrenchment by banks attenuates the effectiveness of monetary policy. The theory unifies an endogenous supply of illiquid local loans and risk-sharing among subsidiaries of bank holding companies (BHCs). We derive an IV-strategy...

Persistent link: https://www.econbiz.de/10012456534

Accounting for Post-Crisis Inflation and Employment : A Retro Analysis

Fratto, Chiara - 2014

What accounts for inflation after 2008? We use the prominent pre-crisis Smets-Wouters (2007) model to address this question. We find that due to price markup shocks alone inflation would have been 1% higher than observed and 0.5% higher that the long-run average. Their standard deviation is...

Persistent link: https://www.econbiz.de/10012457959

The Macroeconomic Consequences of Natural Rate Shocks : An Empirical Investigation

Schmitt-Grohé, Stephanie; Uribe, Martín - National Bureau of Economic Research - 2022

Much of the empirical literature on the natural rate of interest has focused on estimating its path. This paper addresses the question of how exogenous movements in the natural rate of interest affect aggregate activity and inflation in the short and long runs. To this end it proposes a...

Persistent link: https://www.econbiz.de/10013361991

Optimal Domestic (and External) Sovereign Default

D'Erasmo, Pablo - 2016

Infrequent but turbulent episodes of outright sovereign default on domestic creditors are considered a "forgotten history" in Macroeconomics. We propose a heterogeneous-agents model in which optimal debt and default on domestic and foreign creditors are driven by distributional incentives and...

Persistent link: https://www.econbiz.de/10012456169

Economic Policy Uncertainty and the Credit Channel : Aggregate and Bank Level U.S. Evidence over Several Decades

Bordo, Michael D. - 2016

first examine the impact of economic policy uncertainty on aggregate bank credit growth. Then we analyze commercial bank … macroeconomic controls, economic policy uncertainty affected bank level credit growth, and (ii) whether there is variation in the … on bank credit growth. Since this impact varies meaningfully with some bank characteristics - particularly the overall …

Persistent link: https://www.econbiz.de/10012456652

Money and Velocity During Financial Crises : From the Great Depression to the Great Recession

Anderson, Richard G. - 2016

This study offers a single, consistent model that tracks the velocity of broad money (M2) since 1929, including the Great Depression, the global financial crisis, and the Great Recession. The model emphasizes the roles of changes in uncertainty and risk premia, financial innovation, and major...

Persistent link: https://www.econbiz.de/10012456574

Betting the House

Jordà, Òscar - 2014

Is there a link between loose monetary conditions, credit growth, house price booms, and financial instability? This … paper analyzes the role of interest rates and credit in driving house price booms and busts with data spanning 140 years of …

Persistent link: https://www.econbiz.de/10012457895

The Great Mortgaging : Housing Finance, Crises, and Business Cycles

Jordà, Òscar - 2014

This paper unveils a new resource for macroeconomic research: a long-run dataset covering disaggregated bank credit for …

Persistent link: https://www.econbiz.de/10012458166

Relationship and Transaction Lending in a Crisis

Bolton, Patrick - 2013

to profitable firms in a crisis. Using detailed credit register information for Italian banks before and after the Lehman …

Persistent link: https://www.econbiz.de/10012459195