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Discount window policy, banking crises, and indeterminacy of equilibrium

Antinolfi, Gaetano; Keister, Todd - In: Macroeconomic dynamics 10 (2006) 1, pp. 1-19

Persistent link: https://www.econbiz.de/10003258339

The Lender of Last Resort in a General Equilibrium Framework

Kotak, Akshay - 2017

heterogeneous agents and a risk-averse banking sector, and incorporate the frictions of endogenous default, liquidity, and money …

Persistent link: https://www.econbiz.de/10012945261

Banking Panics and Deflation in Dynamic General Equilibrium

Carapella, Francesca - 2015

This paper develops a framework to study the interaction between banking, price dynamics, and monetary policy. Deposit contracts are written in nominal terms: if prices unexpectedly fall, the real value of banks' existing obligations increases. Banks default, panics precipitate, economic...

Persistent link: https://www.econbiz.de/10013024089

Regional Debt in Monetary Unions : Is it Inflationary?

Cooper, Russell W.; Kempf, Hubert; Peled, Dan - 2010

This paper studies the inflationary implications of interest bearing regional debt in a monetary union. Is this debt simply backed by future taxation with no inflationary consequences? Or will the circulation of region debt induce monetization by a central bank? We argue here that both outcomes...

Persistent link: https://www.econbiz.de/10014190466

Forbearance vs Foreclosure in a General Equilibrium Model

Barbaro, Bianca; Tirelli, Patrizio - 2023

decline in the natural interest rate, due to slower productivity growth and persistent liquidity shocks, might explain the …

Persistent link: https://www.econbiz.de/10014355265

Forbearance vs foreclosure in a general equilibrium model

Barbaro, Bianca; Tirelli, Patrizio - 2021

We build a business cycle model characterized by endogenous firms dynamics, where banks may prefer debt renegotiation, i.e. non-performing exposures, to outright borrowers default. We find that debt renegotiations only do not have adverse effects in the event of financial crisis episodes, but a...

Persistent link: https://www.econbiz.de/10012488660

Sources of Liquidity and Liquidity Shortages

Kahn, Charles M. - 2017

We investigate a model of liquidity sources that incorporates a general equilibrium feature of liquidity: when banks … hold more liquidity, other sectors of the economy hold less of it and will consequently supply less in times of crisis. The … private allocation of liquidity is inefficient and optimal liquidity regulation depends on the source of liquidity to which it …

Persistent link: https://www.econbiz.de/10012976648

Recapitalization, bailout, and long-run welfare in a dynamic model of banking

Modena, Andrea - 2020 - This Version: 14th October 2020

This paper studies the link between bank recapitalization and welfare in a dynamic production economy. The model features financial frictions because banks benefit of a cost advantage at monitoring firms and face costly equity issuance. The competitive equilibrium outcome is inecient because...

Persistent link: https://www.econbiz.de/10012300552

Liquidity management of heterogeneous banks during the great recession

Ogawa, Toshiaki - 2020

Persistent link: https://www.econbiz.de/10013461436

Bank Contagion in General Equilibrium

Ferrari, Massimo Minesso - 2020

In this paper, I incorporate a complex network model into a state of the art stochastic general equilibrium framework with an active interbank market. Banks exchange funds one another generating a complex web of interbanking relations. With the tools of network analysis it is possible to study...

Persistent link: https://www.econbiz.de/10012829647