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We estimate a logit mixture vector autoregressive model describing monetary policy transmission in the euro area over the period 2003Q1-2019Q4 with a special emphasis on credit conditions. With the help of this model, monetary policy transmission can be described as mixture of two states (e.g.,...
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We study the macroeconomic effects of bank capital requirements in an economy with two banking sectors. Banks are …-fulfilling wholesale funding rollover crises. Retail bank capital requirements can reduce the frequency and severity of banking crises …. Tightening retail bank capital requirements increases the size and leverage of the shadow banking sector through a novel channel …
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