This paper presents a medium-scale micro-founded model with real and nominal imperfections, named "MOISE" (MOdel for the ISraeli Economy). The model was developed at the Bank of Israel to support monetary policy formulation, and builds on similar models in wide use among central banks. It...

The emergence of institutional investors managing the long-term retirement savings of Israeli households has clearly altered the pattern of financial intermediation in the past decade. Households increasingly hold their savings through these institutions, which in turn provide a growing share of...

The paper follows Gilchrist and Zakrajsek (2012) (henceforth GZ) in examining the evidence on the relationship between the bond market credit spreads (pricing), and financial intermediation as is reflected in banking conducts and the real business cycles. We use an extensive data set of prices...

How long does it take for the stock of financial intermediation capital to return to its optimal, profit maximizing, level following a severe shock, and what is the mechanism that governs it? We introduce a dynamic neoclassical model of capital structure that is governed by the process of...

We construct a dynamic neoclassical model of banking capital where the dynamics are governed by the process of financial capital accumulation and credit risk realizations in a structure where stylized banking characteristics are maintained. This is aimed at focusing on how the...

This paper challenges the dominant model which was used to explain the chronic inflation process, as in Latin America in the seventies and eighties. Unlike the usual long term view we present a variant of the Barro and Gordon policy game model which is based on short term considerations in the...