In this paper, I show that the existence of non-bank financial institutions (NBFIs) has implications for the optimal regulation of the traditional banking sector. I develop a New Keynesian DSGE model for the euro area featuring a heterogeneous financial sector allowing for potential credit...

This paper studies the interaction of international shadow banking with monetary and macroprudential policy in a two-country currency union DSGE model. We find evidence that cross-country financial integration through the shadow banking system is a source of financial contagion in response to...

We explore the interaction of monetary and macroprudential policy in a simple agent-based model of the housing market. Our model shows that the impact of monetary policy on housing market dynamics is smaller than the impact of macroprudential regulation. While both maximum loan-to-value ratios...