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"Interest Rate Trap", or : why does the central bank keep the policy rate too low for too long time?
Cao, Jin; Illing, Gerhard - 2012
central bank's reaction to liquidity stress gives banks incentives to invest in excessive liquidity transformation, triggering …
Persistent link: https://www.econbiz.de/10009533969
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Central banking and financial stability in the long run
Cao, Jin; Chollete, Lorán - 2013
banks play complex, long horizon games and face more than one tradeoff. We account for these issues in a simple infinite … bankruptcy. We term these factors discipline and stability effects, respectively. The central bank’s welfare decreases with … central banks cannot attain both low inflation and financial stability. …
Persistent link: https://www.econbiz.de/10009753000
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Deposit insurance, moral hazard and bank risk
Karas, Alexei; Pyle, William; Schoors, Koen - 2021
a difference-in-difference setting in which private domestic banks serve as the treatment group and state and foreign …-owned banks, whose deposit insurance regime does not change, serve as a control group. …
Persistent link: https://www.econbiz.de/10012421243
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Regulation, financial crises, and liberalization traps
Marchionne, Francesco; Pisicoli, Beniamino; Fratianni, … - 2019
To reconcile the mixed empirical results, we develop a theoretical model whose main implication is a concave impact of regulation on the probability of a crisis. We test this relationship by applying a Probit model of a non-linear specification to annual data from 1999 to 2011 drawn from 132...
Persistent link: https://www.econbiz.de/10012030889
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Europe's great depression : coordination failure after the first World War
Wolf, Nikolaus - 2010
In this paper I survey and reinterpret the extensive literature on Europe's Great Depression. I argue that Europe could not exploit her vast economic potential after 1918, because the war had not yet come to an end - indeed it did not end before 1945. Both, domestic and international...
Persistent link: https://www.econbiz.de/10008696770
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The VARying effect of foreign shocks in Central and Eastern Europe
Jiménez-Rodríguez, Rebeca; Morales Zumaquero, Amalia; … - 2010
This paper investigates the impact of international shocks - interest rate, commodity price and industrial production shocks - on key macroeconomic variables in ten Central and Eastern European (CEE) countries by using near-VAR models and monthly data from the early 1990s to 2009. In contrast to...
Persistent link: https://www.econbiz.de/10003974654
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A Unified framework for using micro-data to compare dynamic wage and price setting models
Dixon, Huw - 2010
This paper develops a statistical framework of steady-state identities which enable us to match the distributions of durations found in the micro-data to generalized Taylor and Calvo models of time-dependent pricing. We illustrate the approach with the UK micro CPI data for 2006-2009, and employ...
Persistent link: https://www.econbiz.de/10003977346
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Outside versus inside bonds : a Modigliani-Miller type result for liquidity constrained economies
Berentsen, Aleksander; Waller, Christopher - 2010
When agents are liquidity constrained, two options exist - sell assets or borrow. We compare the allocations arising in two economies: in one, agents can sell government (outside) bonds and in the other they can borrow by issuing (inside) bonds. All transactions are voluntary, implying no...
Persistent link: https://www.econbiz.de/10008797806
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Catching-up and inflation in Europe : Balassa-Samuelson, Engel's law and other Culprits
Égert, Balázs - 2010
This study analyses the impact of economic catching-up on annual inflation rates in the European Union with a special focus on the new member countries of Central and Eastern Europe. Using an array of estimation methods, we show that the Balassa-Samuelson effect is not an important driver of...
Persistent link: https://www.econbiz.de/10003982012
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Analysis of monetary policy and financial stability : a new paradigm
Goodhart, Charles A. E.; Osorio, Carolina; Tsomocos, … - 2009
This paper introduces agent heterogeneity, liquidity, and endogenous default to a DSGE framework. Our model allows for a comprehensive assessment of regulatory and monetary policy, as well as welfare analysis in the different sectors of the economy. Due to liquidity and endogenous default, the...
Persistent link: https://www.econbiz.de/10003923247