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Money, Credit, Monetary Policy and the Business Cycle in the Euro Area : What Has Changed since the Crisis?

Giannone, Domenico - 2019

This paper studies the relationship between the business cycle and financial intermediation in the euro area. We establish stylized facts and study their stability during the global financial crisis and the European sovereign debt crisis. Long-term interest rates have been exceptionally high and...

Persistent link: https://www.econbiz.de/10012893985

Financial Cycles, Credit Bubbles and Stabilization Policies

Schuler, Tobias - 2019

This paper analyzes the effects of several policy instruments for mitigating financial bubbles generated in the banking sector. We augment a New Keynesian macroeconomic framework by endogenizing boundedly-rational expectations on asset values of loan portfolios, allow for interbank trading and...

Persistent link: https://www.econbiz.de/10012858317

Monetary Policy and Stock Market Boom-Bust Cycles

Christiano, Lawrence J.; Ilut, Cosmin L.; Motto, Roberto; … - 2021

We explore the dynamic effects of news about a future technology improvement which turns out ex post to be overoptimistic. We find that it is difficult to generate a boom-bust cycle (a period in which stock prices, consumption, investment and employment all rise and then crash) in response to...

Persistent link: https://www.econbiz.de/10013316465

Fiscal policy and the Great Recession in the Euro Area

Coenen, Günter - 2012

How much did fiscal policy contribute to euro area real GDP growth during the Great Recession? We estimate that discretionary fiscal measures have increased annualized quarterly real GDP growth during the crisis by up to 1.6 percentage points. We obtain our result by using an extended version of...

Persistent link: https://www.econbiz.de/10013108718

Flight to Liquidity and the Great Recession

Radde, Sören - 2014

This paper argues that counter-cyclical liquidity hoarding by financial intermediaries may strongly amplify business cycles. It develops a dynamic stochastic general equilibrium model in which banks operate subject to agency problems and funding liquidity risk in their inter- mediation activity....

Persistent link: https://www.econbiz.de/10013048760

European Firm Adjustment During Times of Economic Crisis

Fabiani, Silvia - 2015

This paper exploits a unique cross-country, firm-level survey to study the responses of European firms to the sharp demand and credit contraction triggered by the global Great Recession of 2009. The analysis reveals that cost reduction — particularly labour cost reduction through the...

Persistent link: https://www.econbiz.de/10013024781

Forecasting the Covid-19 Recession and Recovery : Lessons from the Financial Crisis

Foroni, Claudia - 2020

models with a variety of indicators during the Covid-19 crisis and recovery period, such as combining forecasts across … similar to the nowcast and forecast errors made during the financial crisis and following recovery seems to produce the best … become much more similar, all unfortunately indicating a much slower recovery than without adjustment and very persistent …

Persistent link: https://www.econbiz.de/10012822725

Switching-Track after the Great Recession

Vinci, Francesca; Licandro, Omar - 2021

We propose a theoretical framework to reconcile episodes of V-shaped and L-shaped recovery, encompassing the behaviour … counterbalance the shocks, preventing the destruction of economic capacity and inducing a V-shaped recovery. However, when shocks are …, the so-called switching-track, weakening the recovering role of monetary policy and inducing an L-shaped recovery. When …

Persistent link: https://www.econbiz.de/10013210843

The Employment Consequences of SMEs’ Credit Constraints in the Wake of the Great Recession

Cornille, David - 2017

This article takes advantage of access to confidential matched bank-firm data relative to the Belgian economy to investigate how employment decisions of small- and medium-sized enterprises (SMEs) have been affected by credit constraints in the wake of the Great Recession. Variability in banks'...

Persistent link: https://www.econbiz.de/10012940882

Intensified Competition and the Impact on Credit Ratings in the RMBS Market

Breemen, Vivian van; Fabozzi, Frank J.; Vink, Dennis - 2022

market for residential mortgage-backed securities (RMBS) in the period 2017-2020. We provide evidence that competition …

Persistent link: https://www.econbiz.de/10013403882