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Understanding bank and nonbank credit cycles : a structural exploration

Durdu, Ceyhun Bora; Zhong, Molin - 2019

We explore the structural drivers of bank and nonbank credit cycles using an estimated medium-scale macro model that … allows for bank and nonbank financial intermediation. We posit economy-wide aggregate and sectoral disturbances to … potentially drive bank and nonbank credit growth. We find that sectoral shocks affecting the balance sheets of entrepreneurs who …

Persistent link: https://www.econbiz.de/10012181042

Why are banks not recapitalized during crises?

Crosignani, Matteo - 2017

, in the context of the eurozone periphery, the increase in domestic government bond holdings, the reduction of bank credit …

Persistent link: https://www.econbiz.de/10011710170

The Impact of the Federal Reserve's Large-Scale Asset Purchase Programs on Corporate Credit Risk

Gilchrist, Simon - 2013

Estimating the effect of Federal Reserve's announcements of Large-Scale Asset Purchase (LSAP) programs on corporate credit risk is complicated by the simultaneity of policy decisions and movements in prices of risky financial assets, as well as by the fact that both interest rates of assets...

Persistent link: https://www.econbiz.de/10013073602

Financial Frictions, Financial Shocks, and Aggregate Volatility

Fuentes-Albero, Cristina - 2016

I revisit the Great Inflation and the Great Moderation for nominal and real variables. I document an immoderation in corporate balance sheet variables so that the Great Moderation is best described as a period of divergent patterns in volatilities for real, nominal and financial variables. A...

Persistent link: https://www.econbiz.de/10013005700

The Risk Channel of Monetary Policy

de Groot, Oliver - 2014

policy shocks are prevalent. A monetary policy reaction function that responds to movements in bank leverage or to movements …

Persistent link: https://www.econbiz.de/10013054300

A Model of Endogenous Loan Quality and the Collapse of the Shadow Banking System

Ferrante, Francesco - 2015

, making the run self-fulfilling and negatively affecting investment. In this framework I study how central bank credit …

Persistent link: https://www.econbiz.de/10013023812

Macroeconomic Policy Games

Bodenstein, Martin - 2014

results by highlighting their sensitivity to the choice of policy instrument. For the second example, a central bank and a …

Persistent link: https://www.econbiz.de/10013044494

Homeowner Balance Sheets and Monetary Policy

Aladangady, Aditya - 2015

This paper empirically identifies an important channel through which monetary policy affects consumer spending: homeowner balance sheets. A monetary loosening increases home values, thereby strengthening homeowner balance sheets and stimulating household spending due to a combination of...

Persistent link: https://www.econbiz.de/10013031609

Financial frictions, financial shocks, and aggregate volatility

Fuentes-Albero, Cristina - 2018 - This version: July 2018

The Great Moderation in the U.S. economy was accompanied by a widespread increase in the volatility of financial variables. We explore the sources of the divergent patterns in volatilities by estimating a model with time-varying financial rigidities subject to structural breaks in the size of...

Persistent link: https://www.econbiz.de/10012016100

Income inequality, financial crises, and monetary policy

Cairó, Isabel; Sim, Jae W. - 2018

We construct a general equilibrium model in which income inequality results in insufficient aggregate demand, deflation pressure, and excessive credit growth by allocating income to agents featuring low marginal propensity to consume, and if excessive, can lead to an endogenous financial crisis....

Persistent link: https://www.econbiz.de/10011932429