This paper analyzes the cyclical effects of bank capital requirements in a simple model with credit market imperfections. Lending rates are set as a premium over the cost of borrowing from the central bank, with the premium itself depending on firms effective collateral. Basel I- and Basel...

Purpose – To discuss, from the perspective of developing countries, recent proposals for reforming international standards for bank capital requirements. Methodology/approach – After evaluating, from the viewpoint of developing countries, the effectiveness of capital requirements reforms and...

A companion to the bestseller, The Impact of Economic Policies on Poverty and Income Distribution, this title deals with theoretical challenges and cutting-edge macro-micro linkage models. The authors compare the predictive and analytical power of various macro-micro linkage techniques using the...