The recent financial crises pointed out the central role of public and private debt in modern economies. However, even if debt is a recurring topic in discussions about the current economic situation, economic modeling does not take into account debt as one of the crucial determinants of...

This paper studies the effect of central banks' targeted refinancing operations on bank lending. It utilizes data from the European Central Bank's targeted longer-term refinancing operations (TLTROs) together with monthly bank level balance sheet data from multiple countries. The effect of...

We investigate the propagation of contagion through banks' balance sheets in a two-country model. We simulate an increase in non-performing loans in one bank, and study the effects on other banks and the macro-economy of each country. We show that credit crunches destabilize each economy in the...

In most economies the banking sector plays the major role in the financial system. Therefore, it is of great importance to analyse and understand the mechanism of transmission of monetary policy and its impact on the banking sector. One of the possible repercussions of changing the level of...

By the act of lending banks do not actually intermediate pre-accumulated real resources but rather create new financial resources in the form of deposits. Therefore, bank credit needs to be modelled as a monetary phenomenon, which directly fuels domestic demand and inflationary pressures. So...

The paper explores the role, evolution and ruling principles of the concept of "money" in the 21st Century. In this continuously evolving context, cryptocurrencies and Blockchain technology are widely considered the most relevant monetary innovations of the last decades. By means of a...

Monetäre Transmission und Bankdarlehen in Deutschland In diesem Beitrag wird die Rolle von Bankdarlehen im monetären Transmissionsprozeß in Deutschland untersucht. Wir folgen einem sektoralen Ansatz, indem wir Kredite der Banken an Geschäfts- und Privatkunden unterscheiden. Wir haben...

In response to the COVID-19 pandemic, G7 central banks have launched asset purchase programs in anticipation of an increase in government bond offerings to finance ballooning fiscal deficits. As the volume of government bonds owned by private investors is not expected to rise during the current...

Mutually reinforcing dynamics between the market liquidity of financial assets and the funding liquidity risks of financial intermediaries were one of the reasons why asset prices declined so significantly with the onset of the financial crisis in 2007. Based on this observation, I show how an...

Despite significant progress in this area, the problem of non-performing loans continues to receive central attention in the banking systems of the SEE countries after the 2008/2009 crisis, reducing the profitability and resource utilization of banks. The purpose of this paper is to investigate...