intervention policy successfully reduces credit, investment, and output volatility, along with substantial welfare gains when …

The objective of this paper to investigate the effectiveness of credit easing policy in mitigating the economic fallout … channels: (i) higher non-performing loans provisions, and (ii) lower the marginal return of assets. Credit policy is modelled …. Unconventional monetary policy, namely credit easing policy, is shown to be ineffective in mitigating the effects of a financial …

This paper presents a credit gap for Malta derived from a semi-structural multivariate filter. This modelling approach … and robust, and the framework is flexible, allowing for further model development with relative ease. The estimated credit … the house price gap. The semi-structural credit gap estimated in this paper correlates with other existing measures of …

bank credit becomes relatively more expensive, reflecting the scarcity of bank equity. More generally, the model is …

augmented with credit spreads (ATR) than under a dual rules regime (DRR) with a Taylor rule and a financial rule targeting … spreads, by 264 and 138 basis points respectively. ATR and STR are tight money-tight credit regimes that respond too much to … money-tight credit regime, with welfare 30 basis points lower than in Cooperative equilibria and the DRR, but still sharply …