This paper studies the effect of shadow banks on monetary aggregates, credit to private agents, and inter-financial institution transactions by incorporating shadow banks into a simple multiple deposit creation scheme. The simple scheme is carefully modified and extended to reflect leverages...

This paper proposes a dynamic stochastic general equilibrium model that endoge­nously generates inflation persistence. We assume that although firms change prices periodically, they face convex costs that preclude optimal adjustment. In essence, the model assumes that price stickiness arises...

We study a fundamental difference between the Bernanke, Gertler, and Gilchrist (BGG, 1999) model and the models with collateral constraints of Kiyotaki and Moore (1997) and Iacoviello (2005). The BGG model implies that the loan-to-value (LTV) ratio is mainly determined by factors affecting...

We study a fundamental difference between the Bernanke, Gertler, and Gilchrist (BGG, 1999) model and the models with collateral constraints of Kiyotaki and Moore (1997) and Iacoviello (2005). The BGG model implies that the loan-to-value (LTV) ratio is mainly determined by factors affecting...

This paper examines the impact of global supply chain disruptions and the associated uncertainty on economic activity and inflation. We employ a Bayesian VAR model with the Global Supply Chain Pressure Index (GSCPI) and estimated uncertainty to analyze their effects during the pandemic. Our...