Similar Search Results

Systemic Bank Runs without Aggregate Risk : How a Misallocation of Liquidity May Trigger a Solvency Crisis

Altermatt, Lukas; van Buggenum, Hugo; Voellmy, Lukas - 2022

We develop a general equilibrium model of self-fulfilling bank runs in a setting without aggregate risk. The key novelty is the way in which the banking system’s assets and liabilities are connected. Banks issue loans to entrepreneurs who sell goods to (impatient) households, which in turn pay...

Persistent link: https://www.econbiz.de/10013406490

Systemic bank runs without aggregate risk : how a misallocation of liquidity may trigger a solvency crisis

Altermatt, Lukas; van Buggenum, Hugo; Voellmy, Lukas - 2022

Persistent link: https://www.econbiz.de/10014239452

How Did the Crisis in International Funding Markets Affect Bank Lending? Balance Sheet Evidence from the United Kingdom

Aiyar, Shekhar S. - 2011

Evidence abounds on the propagation of financial stresses originating in the US mortgage market to banking systems worldwide through international funding markets. But the transmission of this external funding shock to the real economy via bank lending is surprisingly underexamined, given the...

Persistent link: https://www.econbiz.de/10013126714

Imperfect competition, monetary policy and welfare in a currency area

Lombardo, Giovanni - 2002

auf die Wohlfahrt und die optimale Geldpolitik. Betrachtet werden zwei Möglichkeiten, wie die Wettbewerbsintensität am … die Geldpolitik effektiver sein, wenn die Länder größere Asymmetrien aufweisen. Diese Ergebnisse legen es nahe, dass die … intensiver ist. Die optimale Geldpolitik der Zentralbank der Währungsunion wird ermittelt und mit einer einfachen Taylor …

Persistent link: https://www.econbiz.de/10011431763

Existence and uniqueness of solutions to dynamic models with occasionally binding constraints.

Holden, Tom D. - 2016 - This version: 28 March 2016

We present the first necessary and sufficient conditions for there to be a unique perfect-foresight solution to an otherwise linear dynamic model with occasionally binding constraints, given a fixed terminal condition. We derive further conditions on the existence of a solution in such models....

Persistent link: https://www.econbiz.de/10011452241

Secular stagnation

Bossone, Biagio - 2014

This study analyzes the emergence of secular stagnation as the consequence of a rise in the preference for liquidity. Such a rise is caused by a persistent set of pessimistic expectations. This study also investigates the effectiveness of a broad range of demand-management policies in dealing...

Persistent link: https://www.econbiz.de/10010430693

Learning, monetary policy and housing prices

Kanik, Birol - 2012

This paper evaluates different types of simple monetary policy rules according to the determinacy and learnability of rational expectations equilibrium criteria within a dynamic stochastic general equilibrium framework. Incorporating housing prices and collateralized borrowing into the standard...

Persistent link: https://www.econbiz.de/10009407247

Signal extraction and hyperinflations with a responsive monetary policy

Temesváry, Judit (contributor) - 2007

This paper develops a multi-period extension of the Lucas (1972) overlapping generations islandʺ model with endogenous monetary policy (based on the minimization of a loss function over inflation and output deviations) and stochastic realization of the allocationʺ of the young people across...

Persistent link: https://www.econbiz.de/10003609319

CBDCs and NIRP : New Tools for Monetary Policy

Berriel, Tiago - 2019

The last decade has witnessed two groundbreaking developments in monetary economics: The growth in digital private currencies and negative interest rate policies (NIRP), leaving the zero lower bound no longer binding. These developments have introduced two parallel discussions surrounding the...

Persistent link: https://www.econbiz.de/10012889308

When Does the Cost Channel Pose a Challenge to Inflation Targeting Central Banks?

Smith, Andrew - 2016

In a sticky-price model where firms finance their production inputs, there is both a lower and an upper bound on the central bank's inflation response necessary to rule out the possibility of self-fulfilling inflation expectations. This paper shows that real wage rigidities decrease this upper...

Persistent link: https://www.econbiz.de/10013004074