Similar Search Results

Monetary policy and the financial accelerator in a monetary union

Kempf, Hubert; Gilchrist, Simon; Hairault, Jean-Olivier - 2002

In this paper, we consider the effect of a monetary union in a model with a significant role for financial market imperfections. We do so by introducing a financial accelerator into a stochastic general equilibrium model of a two country economy. We show that financial market imperfections...

Persistent link: https://www.econbiz.de/10011604221

Stablecoins, money market funds and monetary policy

Aldasoro, Iñaki; Cornelli, Giulio; Ferrari, Massimo Minesso - 2024

Using a new series of crypto shocks, we document that money market funds' (MMF) assets under management, and traditional financial market variables more broadly, do not react to crypto shocks, whereas stablecoin market capitalization does. U.S. monetary policy shocks, in contrast, drive...

Persistent link: https://www.econbiz.de/10015199454

Brexit, what Brexit? Euro area portfolio exposures to the United Kingdom since the Brexit referendum

Carvalho, Daniel; Schmitz, Martin - 2022

exposures to debt securities and listed shares. Our key finding is the absence of a negative "Brexit-effect" for euro area … that euro area investors increased their absolute and relative exposures to UK-issued and pound-denominated debt securities … against the backdrop of low yields on euro area debt securities and a strong recovery in UK share prices since the Brexit …

Persistent link: https://www.econbiz.de/10014278325

Managing the transition to central bank digital currency

Assenmacher, Katrin; Ferrari, Massimo Minesso; Mehl, Arnaud - 2024

We develop a two-country DSGE model with financial frictions to study the transition from a steady-state without CBDC to one in which the home country issues a CBDC. The CBDC provides households with a liquid, convenient and storage-cost-free means of payments which reduces the market power of...

Persistent link: https://www.econbiz.de/10014543628

Domestic and external sectoral portfolios: Network structure and balance-sheet contagion

Heipertz, Jonas; Rancière, Romain; Valla, Natacha - 2018

This paper uses a unique comprehensive database on French security assets and liabilities to study the dynamics of domestic and external sectoral portfolios, their network structure, and their role in the propagation of shocks. We first show how the sharp deterioration of the net external...

Persistent link: https://www.econbiz.de/10012142059

International spillovers of monetary policy: Evidence from France and Italy

Schmidt, Julia; Caccavaio, Marianna; Carpinelli, Luisa; … - 2018

In this paper we provide empirical evidence on the impact of US and UK monetary policy changes on credit supply of banks operating in Italy and France over the period 2000-2015, exploring the existence of an international bank lending channel based on the reliance on funding sources located in...

Persistent link: https://www.econbiz.de/10012142060

Gambling traps

Ari, Anil - 2018

bear on the European sovereign debt crisis, in the course of which under-capitalized banks in default-risky countries … experienced an increase in funding costs and raised their holdings of domestic government debt. The model is quantied using …

Persistent link: https://www.econbiz.de/10012142061

Distance(s) and the volatility of international trade(s)

Mehl, Arnaud; Schmitz, Martin; Tille, Cédric - 2019

Does distance matter for the volatility of international real and financial transactions? We show that it does, in addition to its well-established relevance for the level of trade. A simple model of trade with endogenous markups shows that demand shocks have a larger impact on trade between...

Persistent link: https://www.econbiz.de/10012142096

Central bank digital currency in an open economy

Ferrari, Massimo Minesso; Mehl, Arnaud; Stracca, Livio - 2020

We examine the open-economy implications of the introduction of a central bank digital currency (CBDC). We add a CBDC to the menu of monetary assets available in a standard two-country DSGE model with financial frictions and consider a broad set of alternative technical features in CBDC design....

Persistent link: https://www.econbiz.de/10012422150

Credit growth, the yield curve and financial crisis prediction: Evidence from a machine learning approach

Bluwstein, Kristina; Buckmann, Marcus; Joseph, Andreas; … - 2021

We develop early warning models for financial crisis prediction by applying machine learning techniques to macrofinancial data for 17 countries over 1870-2016. Most nonlin-ear machine learning models outperform logistic regression in out-of-sample predictions and forecasting. We identify...

Persistent link: https://www.econbiz.de/10012819028