Salem, Salha Ben; Sayari, Sonia; Labidi, Moez - In: Economies : open access journal 12 (2024) 3, pp. 1-16
In this study, we explored the impact of bank leverage and financial frictions on the transmission of real and … financial shocks. Two new Keynesian dynamic stochastic general equilibrium (DSGE) models, with and without financial frictions …-productivity, monetary, and adverse bank capital shocks. The findings reveal that, in the model with financial frictions, the response of …