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Economists in the 2008 Financial Crisis: Slow to See, Fast to Act

Levy, Daniel; Mayer, Tamir; Raviv, Alon - 2022

We study the economics and finance scholars’ reaction to the 2008 financial crisis using machine learning language analyses methods of Latent Dirichlet Allocation and dynamic topic modelling algorithms, to analyze the texts of 14,270 NBER working papers covering the 1999–2016 period. We find...

Persistent link: https://www.econbiz.de/10015267336

Financial constraints, risk sharing, and optimal monetary policy

Zaretski, Aliaksandr - 2021

I characterize optimal government policy in a sticky-price economy with different types of consumers and endogenous financial constraints in the banking and entrepreneurial sectors. The competitive equilibrium allocation is constrained inefficient due to a pecuniary externality implicit in the...

Persistent link: https://www.econbiz.de/10015214604

Financial Development and Amplification

Hirano, Tomohiro - 2009

. Financial development yields two competing effects, balance sheet effects and shock cushioning effects. Depending on which of … unexpected productivity shocks, money growth targeting dampens financial amplification by producing shock cushioning effects. On … the other hand, inflation targeting exacerbates the shocks because under the policy, shock cushioning effects are not …

Persistent link: https://www.econbiz.de/10015217930

Firm entry and monetary policy transmission under credit rationing

Kobayashi, Teruyoshi - 2009

This paper presents an additional credit channel for monetary policy that would arise in the presence of credit rationing. I formally examine a situation in which new entry firms have no choice but to borrow funds from a financial intermediary to cover entry costs, taking into account the fact...

Persistent link: https://www.econbiz.de/10015218434

Credit Crunch in a Small Open Economy

Brzoza-Brzezina, Michal; Makarski, Krzysztof - 2009

We construct an open-economy DSGE model with a banking sector to analyse the impact of the recent credit crunch on a small open economy. In our model the banking sector operates under monopolistic competition, collects deposits and grants collateralized loans. Collateral effects amplify monetary...

Persistent link: https://www.econbiz.de/10015219042

Expectations-Driven Cycles in the Housing Market

Mendicino, Caterina; Lambertini, Luisa; Punzi, Maria Teresa - 2010

This paper analyzes housing market boom-bust cycles driven by changes in households'expectations. We explore the role of expectations not only on productivity but on several other shocks that originate in the housing market, the credit market and the conduct of monetary policy. We find that, in...

Persistent link: https://www.econbiz.de/10015220432

Housing market dynamics and welfare

Büyükkarabacak, Berrak; Mykhaylova, Olena - 2010

We augment a closed-economy DSGE model with collateral constraints tied to real estate values by incorporating the time-to-build phenomenon in the housing construction sector. Adding construction sector delays significantly improves business cycle properties of the model relative to the versions...

Persistent link: https://www.econbiz.de/10015222012

Asset prices and monetary policy in a sticky-price economy with financial frictions

Nutahara, Kengo - 2010

A recent study shows that equilibrium indeterminacy arises if monetary policy responds to asset prices, especially share prices, in a sticky-price economy. We show that equilibrium indeterminacy never arises if the working capital of firms is subject to their asset values by financial frictions.

Persistent link: https://www.econbiz.de/10015222474

Firm entry, credit availability and monetary policy

Kobayashi, Teruyoshi - 2010

This paper presents a dynamic general equilibrium model that incorporates firm entry under credit rationing. Goods-producing firms in this model are bank dependent in the sense that they have no choice but to borrow funds from banks to cover labor wages that must be paid in advance of...

Persistent link: https://www.econbiz.de/10015223528

Expectations-Driven Cycles in the Housing Market

Lambertini, Luisa; Mendicino, Caterina; Punzi, Maria Teresa - 2010

This paper analyzes housing market boom-bust cycles driven by changes in households' expectations. We explore the role of expectations not only on productivity but on several other shocks originated in the housing market, the credit market, the production sector and the conduct of monetary...

Persistent link: https://www.econbiz.de/10015223828