Bratsiotis, George; Theodoridis, Konstantinos - 2020
(volatility) dependent effects on the real economy. To understand the transmission of the shock, we develop a DSGE model of …This paper identifies a precautionary banking liquidity shock via a set of sign, zero and forecast variance … restrictions imposed. The shock proxies the reluctance of the banking sector to "lend" to the real economy induced by an exogenous …