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Financial fragility, bubbles and monetary policy

Illing, Gerhard - 2001

The paper models the links between financial fragility, asset markets and monetary policy. It is shown that central bank's concern about the cost of financial disruption generates an asymmetric response, thus contributing to the creation of an asset price bubble. In an economy with a highly...

Persistent link: https://www.econbiz.de/10011398119

Who needs foreign banks?

Gros, Daniel - 2003

10 countries from Central and Eastern Europe (CEEC) that will join the EU in 2004/7 the banking system is now dominated …

Persistent link: https://www.econbiz.de/10011508110

Emergent dynamics of a macroeconomic agent based model with capital and credit

Assenza, Tiziana; Delli Gatti, Domenico; Grazzini, Jakob - 2014 - First Draft: July, 2013. This Draft: March, 2014

Agent-Based Model with Capital and Credit (hereafter CC-MABM). The novelty of this model with respect to the previous …

Persistent link: https://www.econbiz.de/10010347040

Financial cycles, credit bubbles and stabilization policies

Corrado, Luisa; Schuler, Tobias - 2018

This paper analyzes the effects of several policy instruments to mitigate financial bubbles generated in the banking sector. We augment a New Keynesian macroeconomic framework by endogenizing boundedly-rational expectations on asset values of loan portfolios and allow for interbank trading. We...

Persistent link: https://www.econbiz.de/10011952012

Financial market responses to a natural disaster : evidence from local credit networks and the Indian Ocean tsunami

Czura, Kristina; Klonner, Stefan - 2018

Conventional wisdom in economics holds that traditional credit and insurance networks are inapt for insuring against … Savings and Credit Associations (Roscas), a popular group-based financial institution world-wide, in the aftermath of the 2004 … occupational groups, the price of credit and other loan characteristics. We find that the supply of funds in these local credit …

Persistent link: https://www.econbiz.de/10011931550

Why countries differ in thin capitalization rules : the role of financial development

Mardan, Mohammed - 2015

In the absence of financial frictions, the purpose of thin capitalization rules is to limit multinational firms’ possibilities of engaging in tax planning via debt shifting. This paper analyzes the effects of thin capitalization rules in the case where firms have limited access to external...

Persistent link: https://www.econbiz.de/10010506334

Regional implications of financial market development : credit rationing, trade, and location

Ehrlich, Maximilian von; Seidel, Tobias - 2013

We develop a heterogeneous-firms model with trade in goods, labor mobility and credit constraints due to moral hazard … of economic activity with information on the access to credit and the dependence on external finance. Our estimates for … economic activity. -- financial market development ; credit constraints ; moral hazard ; location ; migration ; heterogeneous …

Persistent link: https://www.econbiz.de/10009690748

The short-run and long-run effects of trade openness on financial development : some panel evidence for Europe

Caporale, Guglielmo Maria; Sova, Anamaria Diana; Sova, … - 2021

This paper analyses the short- and long-run effects of trade openness on financial development in a panel including data on 35 European countries over the period 2001-2019. For this purpose, it uses the PMG (pooled mean group) estimator for dynamic panels developed by Pesaran et al. (1999). The...

Persistent link: https://www.econbiz.de/10012514560

Wars and markets : how bond values reflect World War II

Frey, Bruno S.; Kucher, Marcel - 1999

Historical events are reflected in asset prices. In this paper, we analyse government bond prices of Germany and Austria traded on the Swiss bourse during WWII. Some war events that are generally considered crucial are clearly reflected in government bond prices. This holds, in particular, for...

Persistent link: https://www.econbiz.de/10009781716

Institutions, financial development, and small business survival : evidence from European emerging markets

Iwasaki, Ichirō; Kočenda, Evžen; Shida, Yoshisada - 2020

In this paper, we traced the survival status of 94,401 small businesses in 17 European emerging markets from 2007–2017 and empirically examined the determinants of their survival, focusing on institutional quality and financial development. We found that institutional quality and the level of...

Persistent link: https://www.econbiz.de/10012304241