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 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...