Showing 41 - 50 of 874,633
We introduce frictional financial intermediation into a HANK model. Households are subject to idiosyncratic and aggregate risk and smooth consumption through savings and consumer loans intermediated by banks. The banking friction introduces an endogenous countercyclical spread between the...
Persistent link: https://www.econbiz.de/10012705511
This paper studies the interaction of international shadow banking with monetary and macroprudential policy in a two-country currency union DSGE model. We find evidence that cross-country financial integration through the shadow banking system is a source of financial contagion in response to...
Persistent link: https://www.econbiz.de/10012224888
Could a monetary policy loosening entail the opposite effect than the intended expansionary impact in a low interest rate environment? We demonstrate that the risk of hitting the rate at which the effect reverses depends on the capitalization of the banking sector by using a non-linear...
Persistent link: https://www.econbiz.de/10013315005
This paper develops an estimated New Keynesian model of a commodity-exporting economy for an integrated policy framework, integrating the full range of policies used in practice and featuring a range of nominal and real rigidities, macro-financial linkages, and transmission channels of external...
Persistent link: https://www.econbiz.de/10014249617
Persistent link: https://www.econbiz.de/10013326631
Persistent link: https://www.econbiz.de/10011741989
This occasional paper describes how the financial stability and macroprudential policy functions are organised at the ECB. Financial stability has been a key policy function of the ECB since its inception. Macroprudential policy tasks were later conferred on the ECB by the Single Supervisory...
Persistent link: https://www.econbiz.de/10012033308
This paper assesses the effectiveness and associated externalities that arise when macroprudential policies (MPPs) are …
Persistent link: https://www.econbiz.de/10010382164
Persistent link: https://www.econbiz.de/10012177390
discusses three key externalities across financial institutions and from financial institutions to the real economy that … rationalize the need for macroprudential policy: externalities related to strategic complementarities, fire sales and …
Persistent link: https://www.econbiz.de/10012942526