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Caballero, Ricardo J. - 2004

Most economists and observers place the lack of fiscal discipline at the core of the recent Argentine crisis. This begs the question of how countries like Belgium or Italy (pre-Maastricht) could run large fiscal deficits and accumulate debts far beyond those of Argentina, without experiencing...

Persistent link: https://www.econbiz.de/10012468161

Fire Sales in a Model of Complexity

Caballero, Ricardo J. - 2009

Financial assets provide return and liquidity services to their holders. However, during severe financial crises many … asset prices plummet, destroying their liquidity provision function at the worst possible time. In this paper we present a … not control or understand. The liquidity of the market quickly vanishes and a financial crisis ensues. The model exhibits …

Persistent link: https://www.econbiz.de/10012463170

A Dual Liquidity Model for Emerging Markets

Caballero, Ricardo J. - 2002

emerging economy, and those affecting borrowing from foreign lenders. This 'dual liquidity' model offers a parsimonious …

Persistent link: https://www.econbiz.de/10012469957

On the Global Impact of Risk-off Shocks and Policy-put Frameworks

Caballero, Ricardo J. - 2019

play a key role in benefiting from the spillovers of these policies during risk-off episodes. Countries like Japan, which … already had very low long rates, benefited less. However, Japan still benefitted from the reduced persistence of risk …

Persistent link: https://www.econbiz.de/10012479979

Inflation Targeting and Sudden Stops

Caballero, Ricardo J. - 2003

Emerging economies experience sudden stops in capital inflows. As we have argued in Caballero and Krishnamurthy (2002), having access to monetary policy during these sudden stops is useful, but mostly for insurance' rather than for aggregate demand reasons. In this environment, a central bank...

Persistent link: https://www.econbiz.de/10012469099

What Do a Million Banks Have to Say About the Transmission of Monetary Policy?

Kashyap, Anil K. - 1997

In an effort to shed new light on the monetary transmission mechanism, we create a panel data set that includes quarterly observations of every insured commercial bank in the United States over the period 1976-1993. Our key cross-sectional finding is that the impact of monetary policy on lending...

Persistent link: https://www.econbiz.de/10012472758

The Impact of Monetary Policy on Bank Balance Sheets

Kashyap, Anil K. - 1994

This paper uses disaggregated data on bank balance sheets to provide a test of the lending view of monetary policy transmission. We argue that if the lending view is correct, one should expect the loan and security portfolios of large and small banks to respond differentially to a contraction in...

Persistent link: https://www.econbiz.de/10012474094

Monetary Policy and Bank Lending

Kashyap, Anil - 1993

This paper surveys recent work that relates to the "lending" view of monetary policy transmission. It has three main goals: 1) to explain why it is important to distinguish between the lending and "money" views of policy transmission; 2) to outline the microeconomic conditions that are needed to...

Persistent link: https://www.econbiz.de/10012474641

A Monetary Policy Asset Pricing Model

Caballero, Ricardo J.; Simsek, Alp - National Bureau of Economic Research - 2022

We propose a model where monetary policy is the key determinant of aggregate asset prices (financial conditions). Spending decisions are made by a group of agents ("households") that respond to aggregate asset prices, but with noise, delays, and inertia. Asset pricing is determined by a...

Persistent link: https://www.econbiz.de/10013334351

Central Banks, Stock Markets, and the Real Economy

Caballero, Ricardo J.; Simsek, Alp - National Bureau of Economic Research - 2024

This article summarizes empirical research on the interaction between monetary policy and asset markets, and reviews our previous theoretical work that captures these interactions. We present a concise model in which monetary policy impacts the aggregate asset price, which in turn influences...

Persistent link: https://www.econbiz.de/10014468253