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-off in situations with many alternative lenders (booms) and with few alternative lenders (credit crises), and explains how … the results depend on factors such as the severity of a credit crisis, the strength of the firm-bank relationship and the …
Persistent link: https://www.econbiz.de/10013108064
The growth and deepening of financial markets entailed the expectation that the bank lending channel of monetary policy transmission would lose its importance. The paper explains why, on the contrary, the banking sector has become a major locus of origination and amplification of macro-financial...
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This paper analyzes the design of simple macroprudential rules for bank and non-bank credit markets in a medium … rule implies near price stability, while the optimal macroprudential policy rule stabilizes bank credit and bond volumes …
Persistent link: https://www.econbiz.de/10012549714
This paper analyzes the effects of several policy instruments to mitigate financial bubbles generated in the banking sector. We augment a New Keynesian macroeconomic framework by endogenizing boundedly-rational expectations on asset values of loan portfolios and allow for interbank trading. We...
Persistent link: https://www.econbiz.de/10012892165
loan portfolios, allow for interbank trading and show how a credit bubble can develop from a financial innovation. We then …
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