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Fighting inflation more effectively without transferring central banks' profits to banks

De Grauwe, Paul; Ji, Yuemei - 2023

The major central banks now operate in a regime of abundance of bank reserves. As a result, they can only raise the money market rate by increasing the rate of remuneration of bank reserves. This, in turn, leads to large transfers of the central banks' profits (and more) to commercial banks that...

Persistent link: https://www.econbiz.de/10014422581

Channel systems : why is there a positive spread?

Berentsen, Aleksander; Marchesiani, Alessandro; Waller, … - 2010

An increasing number of central banks implement monetary policy via two standing facilities: a lending facility and a deposit facility. In this paper we show that it is socially optimal to implement a non-zero interest rate spread. We prove this result in a dynamic general equilibrium model...

Persistent link: https://www.econbiz.de/10008732253

Lender of last resort and bank closure policy

Freixas, Xavier (contributor); Parigi, Bruno (contributor) - 2008

Persistent link: https://www.econbiz.de/10003688919

Credit market competition and liquidity crises

Elena, Carletti; Leonello, Agnese - 2014

We develop a model where banks invest in reserves and loans, and face aggregate liquidity shocks. Banks with liquidity shortage sell loans on the interbank market. Two equilibria emerge. In the no default equilibrium, all banks hold enough reserves and remain solvent. In the mixed equilibrium,...

Persistent link: https://www.econbiz.de/10010249670

Monetary policy with reserves and CBDC : optimality, equivalence, and politics

Niepelt, Dirk - 2020

We analyze policy in a two-tiered monetary system. Noncompetitive banks issue deposits while the central bank issues reserves and a retail CBDC. Monies differ with respect to operating costs and liquidity. We map the framework into a baseline business cycle model with “pseudo wedges” and...

Persistent link: https://www.econbiz.de/10012318352

The funds concentration effect and discriminatory bailout

Erlenmaier, Ulrich; Gersbach, Hans - 2001

In the presence of macroeconomic shocks severe enough to threaten the liquidity or solvency of the banking system, the …

Persistent link: https://www.econbiz.de/10011400865

Unexpected loan losses and bank capital in an estimated DSGE model of the Euro area

Hristov, Nikolay; Hülsewig, Oliver - 2016

We develop a stylized DSGE model in which banks face capital regulation and their loan portfolios are subject to non-diversifiable losses due to aggregate shocks. The framework is used to explore the importance of the interaction between macroeconomic conditions, credit default and bank...

Persistent link: https://www.econbiz.de/10011557772

Bank networks : contagion, systemic risk and prudential policy

Aldasoro, Iñaki; Delli Gatti, Domenico; Faia, Ester - 2015

We present a network model of the interbank market in which optimizing risk averse banks lend to each other and invest in non-liquid assets. Market clearing takes place through a tâtonnement process which yields the equilibrium price, while traded quantities are determined by means of a...

Persistent link: https://www.econbiz.de/10010475334

The countercyclical capital buffer and the composition of bank lending

Auer, Raphael A.; Ongena, Steven - 2019

Do macroprudential regulations on residential lending influence commercial lending behavior too? To answer this question, we identify the compositional changes in banks' supply of credit using the variation in their holdings of residential mortgages on which extra capital requirements were...

Persistent link: https://www.econbiz.de/10012064522

Does tax evasion affect economic crime?

Argentiero, Amedeo; Chiarini, Bruno; Marzano, Elisabetta - 2018

crime that are related to economic determinants: property crimes (including robbery, theft and car theft), fraud and usury … tax evasion positively affects economic crimes. Notably, the elasticity of tax evasion to fraud is related to the size of … adjustment costs. Finally, we find that property crimes, fraud and usury are not influenced by deterrence or clearing …

Persistent link: https://www.econbiz.de/10011814715

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