This paper investigates the optimal monetary policy response to a shock to collateral when policymakers act under … model misspecification leads to a more aggressive policy response. The same is true for a shock to collateral. A preference … of disturbances affect the economy: in the case of a shock to collateral the policymaker does not need to be as much …

This paper analyses the determinants of collateral in loans granted to entrepreneurs and consumers. We use cross … score, are more likely to pledge collateral. At the same time, wealthier borrowers are more likely to pledge collateral in … order to benefit from a reduction in their interest costs. We also present evidence on other determinants of collateral such …