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Risky Mortgages, Bank Leverage and Credit Policy

Ferrante, Francesco - 2016

worth channel, as defined by Mian and Sufi (2014), which affected the wealth of leveraged households; and a bank net worth … link between their borrowing capacity and house prices. The interaction among the housing net worth channel, the bank net … variance of housing risk and a deterioration in the collateral value of mortgages for bank funding. Both shocks are able to …

Persistent link: https://www.econbiz.de/10014130918

Voluntary reserve targets

Baughman, Garth; Carapella, Francesca - 2018

matter the relative abundance of reserves, VRT encourage market activity and support the central bank's control over interest … the central bank on market outcomes and (ii) a comparison with the implementation framework currently adopted by the …

Persistent link: https://www.econbiz.de/10011932184

The Impact of the Federal Reserve's Large-Scale Asset Purchase Programs on Corporate Credit Risk

Gilchrist, Simon - 2013

Estimating the effect of Federal Reserve's announcements of Large-Scale Asset Purchase (LSAP) programs on corporate credit risk is complicated by the simultaneity of policy decisions and movements in prices of risky financial assets, as well as by the fact that both interest rates of assets...

Persistent link: https://www.econbiz.de/10013073602

The Effects of the Federal Reserve's Date-Based Forward Guidance

Raskin, Matthew - 2013

Between August 2011 and December 2012 the Federal Open Market Committee (FOMC) used date-based forward guidance to help stimulate the U.S. economy and promote its objectives of maximum employment and price stability. Some have argued that the formulation of the guidance that the FOMC used may...

Persistent link: https://www.econbiz.de/10013078392

Financial Stability Considerations for Monetary Policy : Theoretical Mechanisms

Ajello, Andrea; Boyarchenko, Nina; Gourio, François; … - 2022

This paper reviews the theoretical literature at the intersection of macroeconomics and finance to draw lessons on the connection between vulnerabilities in the financial system and the macroeconomy, and on how monetary policy affects that connection. This literature finds that financial...

Persistent link: https://www.econbiz.de/10013300269

Financial Stability Considerations for Monetary Policy : Empirical Evidence and Challenges

Boyarchenko, Nina; Favara, Giovanni; Schularick, Moritz - 2022

This paper reviews literature on the empirical relationship between vulnerabilities in the financial system and the macroeconomy, and how monetary policy affects that connection. Financial vulnerabilities build up over time, with both risk appetite and risk taking rising during economic...

Persistent link: https://www.econbiz.de/10013300859

A Model of Endogenous Loan Quality and the Collapse of the Shadow Banking System

Ferrante, Francesco - 2015

, making the run self-fulfilling and negatively affecting investment. In this framework I study how central bank credit …

Persistent link: https://www.econbiz.de/10013023812

Did the Founding of the Federal Reserve Affect the Vulnerability of the Interbank System to Systemic Risk?

Carlson, Mark - 2016

reduced their liquidity after the Fed's founding. The industry's response illustrates how the introduction of a lender of last …

Persistent link: https://www.econbiz.de/10013210432

Assessing the Effects of the Zero-Interest-Rate Policy Through the Lens of a Regime-Switching DSGE Model

Chen, Han - 2014

Standard dynamic stochastic general equilibrium (DSGE) models assume a Taylor rule and forecast an increase in interest rates immediately after the 2007-2009 economic recession given the predicted output and inflation, contradictory to the extended period of near-zero interest rate policy (ZIRP)...

Persistent link: https://www.econbiz.de/10013052892

Macroeconomic Effects of Large-Scale Asset Purchases : New Evidence

Kim, Kyungmin; Laubach, Thomas; Wei, Min - 2020

yields, credit spreads and equity prices-and through bank lending. The effects on Treasury yields and term premiums appear to … be longer-lived than previously documented, while the effects on credit spreads and especially bank lending also appear …

Persistent link: https://www.econbiz.de/10014095856