I document key business cycle facts of aggregate financial flows in the U.S. banking sector : (i) Bank credit, deposits and loan spread are less volatile than output, while net worth and leverage ratio are more volatile, (ii) bank credit and net worth are procyclical, while deposits, leverage...

This paper assesses the potential procyclical effects of Basel II capital requirements by evaluating to what extent those effects depend on the composition of banks' asset portfolios and on how borrowers' credit risk evolves over the business cycle. By developing a heterogeneous-agent general...

At the forefront of macroeconomic research on the causes of the Great Financial Crisis (GFC) was and still is the usage of dynamic stochastic general equilibrium (DSGE) models. To capture the nonlinearities of the GFC, these models were enriched with a variety of fiÂ…nancial frictions. This...

At the forefront of macroeconomic research on the causes of the Great Financial Cri- sis (GFC) was and still is the usage of dynamic stochastic general equilibrium (DSGE) models. To capture the nonlinearities of the GFC, these models were enriched with a variety of financial frictions. This...

his paper assesses the potential procyclical effects of Basel II capital requirements by evaluating to what extent those effects depend on the composition of banks' asset portfolios and on how borrowers' credit risk evolves over the business cycle.By developing a heterogeneous-agent general...

The balance of macro accounting requires that there are economic entities have opposite preferences and take opposite economic activities like mirror copy (Nshi(2017)). This paper provides examples of uses of the symmetry rule for financial markets.Most important implication of the symmetry...

It is shown empirically that for decades, the US economy has been in a state of stagflation which is defined by rising prices and simultaneously falling economic growth. It is a phenomenon involving not just “secular stagnation” (Summers, 2015) of low growth, but high inflation as well. A...

Was the post-crisis growth slowdown in Central, Eastern and Southeastern Europe (CESEE) structural or cyclical? We use three different methods--production function approach, basic multivariate filter, and multivariate filter with financial frictions--to evaluate potential growth and output gaps...

This paper develops an accounting oriented general equilibrium model that represents macro statistical systems by aggregating journal entries of micro accounting. The aim of the model is integrating microeconomics and macroeconomics by the different way from modern macroeconomics. From a reverse...

This paper uses a multivariate filter and a production function to project potential growth inColombia, modeling in detail the impact of low oil prices on investment. The framework alsocaptures the impact of current and planned policies on potential growth, including the peaceagreement with the...