frictions prevail. We modify a standard financial accelerator model à la Bernanke, Gertler, and Gilchrist (1999) and allow for …

world with only a monetary policy and a productivity shock, the full model matches the relative volatility of the external …

appreciates in response to an asymmetric negative demand shock at the zero lower bound (ZLB) and exacerbates the adverse … at the ZLB. In sharp contrast to the full information model: (i) A negative demand shock concentrated in the home country … causes a real exchange rate depreciation that partially absorbs the demand shock. (ii) A VAR with an identified demand shock …

which incorporate such linkages. The financial frictions typically considered are the financial accelerator mechanism … also look at historical shock decompositions of real GDP growth across the models since 2005 in order to shed light on the … Constraints ; Financial Accelerator ; Model Comparison ; Eurosystem central bank models …

effectiveness of monetary policy can be linked to weaker responses of credit costs, suggesting a financial accelerator mechanism … aggregate shocks and the financial accelerator more effective. On the contrary, in high volatility periods banks decrease … leverage, which renders the financial accelerator less effective; this in turn decreases the ability of monetary policy to …

This paper proposes a tractable financial accelerator New Keynesian DSGE modelthat allows for closed-form solutions. In …