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Size matters in banking. In this paper, we explore whether shocks originating at large banks affect the probability of distress of smaller banks and thus the stability of the banking system. Our analysis proceeds in two steps. In a first step, we follow Gabaix (2008a) and construct a measure of...
Persistent link: https://www.econbiz.de/10010298780
Im Mittelpunkt der wirtschaftspolitischen Debatte über die Covid-19-Pandemie steht bisher die Realwirtschaft. Dort hatte sich der Lockdown direkt und schockartig ausgewirkt; der stationäre Einzelhandel war weitgehend unterbunden, Hotel und Gaststätten waren geschlossen, Lieferketten national...
Persistent link: https://www.econbiz.de/10012269123
monetary policy shocks in Germany and the euro area. The results suggest that the dynamic responses in the two areas are …
Persistent link: https://www.econbiz.de/10010295823
This paper develops a Dynamic Stochastic General Equilibrium (DSGE) model to study how the instability of the banking sector can amplify and propagate business cycles. The model builds on Bernanke, Gertler and Gilchrist (BGG) (1999), who consider credit demand friction due to agency cost, but it...
Persistent link: https://www.econbiz.de/10010299852
This paper explains the emergence of liquidity traps in the aftermath of large-scale financial crises, as happened in the US 1930s, Japan 1990s and recently in the US and Europe. The paper introduces a new balance sheet channel that links equity capital to the risk-free interest rate. When...
Persistent link: https://www.econbiz.de/10010335985
stability. We model the default of a large bank and analyse the resulting contagion effects. This is compared to a common shock …
Persistent link: https://www.econbiz.de/10010269747
, private firms in Germany received 0.27 euros of external equity. Firm-owner linkages indicate that outsiders provided equity …
Persistent link: https://www.econbiz.de/10015199486
This paper investigates the macroeconomic effects of UK banking crises over the period 1750 to 1938. We construct a new annual banking crisis series using bank failure rate data, which suggests that the incidence of banking crises was every 32 years. Using our new series and a narrative approach...
Persistent link: https://www.econbiz.de/10011743002
Bond yield and retail interest rate spreads are presumed to lead real activity on the basis of financial accelerator mechanisms, markup cyclicality or simply because they are forward-looking. Empirical results for Austria show that retail rate spreads outperform many other indicators in this...
Persistent link: https://www.econbiz.de/10010294615
financial institutions in the transmission of credit and technology shocks to the real economy. A positive credit shock, defined … between loan and deposit rates. The effects of the credit shock tend to be highly persistent even without price rigidities and …
Persistent link: https://www.econbiz.de/10010282516