crisis have affected the conduct of monetary policy by the European Central Bank (ECB) within the Eurosystem, have led to the …

crisis. These policies are often aimed at the commercial banking sector, while a host of other non-bank financial … institutions, or shadow banks, may not fall under their jurisdiction. We study the effects of tightening commercial bank regulation … tighter capital requirements on commercial banks increase shadow bank lending, which may have adverse financial stability …

We integrate banks and the coexistence of bank and bond financing into an otherwise standard New Keynesian framework … moderate bank credit cycles, and to induce a more efficient allocation of resources across sectors. Moreover, we investigate … that the central bank should focus exclusively on price stability and the macroprudential policy-maker should react …