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'Leaning Against the Wind' and the Timing of Monetary Policy

Agur, Itai - 2013

If monetary policy is to aim also at financial stability, how would it change? To analyze this question, this paper develops a general-form framework. Financial stability objectives are shown to make monetary policy more aggressive: in reaction to negative shocks, cuts are deeper but...

Persistent link: https://www.econbiz.de/10013082854

Monetary Policy and Excessive Bank Risk Taking

Agur, Itai - 2011

negative shock …

Persistent link: https://www.econbiz.de/10013119110

Monetary Policy and Excessive Bank Risk Taking

Agur, Itai - 2011

If monetary policy is to aim at financial stability, how would it change? To analyze this question, this paper develops a general-form, axiomatic framework. Financial stability objectives are shown to make a monetary authority more conservative and more aggressive. Conservative as it sets higher...

Persistent link: https://www.econbiz.de/10013133773

Systemic risk in a network model of interbank markets with central bank activity

Georg, Co-Pierre; Poschmann, Jenny - 2010

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/10003971540

Exchange rates and the information channel of monetary policy

Holtemöller, Oliver; Kriwoluzky, Alexander; Kwak, Boreum - 2020

We disentangle the effects of monetary policy announcements on real economic variables into an interest rate shock … component and a central bank information shock component. We identify both components using changes in interest rate futures and … that a contractionary interest rate shock appreciates the dollar, increases the excess bond premium, and leads to a decline …

Persistent link: https://www.econbiz.de/10012301353

Leaning against the wind and crisis risk

Schularick, Moritz; Ter Steege, Lucas; Ward, Felix - 2020

Can central banks defuse rising stability risks in financial booms by leaning against the wind with higher interest rates? This paper studies the state-dependent effects of monetary policy on financial stability. Based on the near-universe of advanced economy financial cycles since the 19th...

Persistent link: https://www.econbiz.de/10012260596

The Risk-Taking Channel of Monetary Policy in the Us : Evidence from Corporate Loan Data

Delis, Manthos D. - 2017

To study the presence of a risk-taking channel in the US, we build a comprehensive dataset from the syndicated corporate loan market and measure monetary policy using different measures, most notably Taylor (1993) and Romer and Romer (2004) residuals. We identify a negative relation between...

Persistent link: https://www.econbiz.de/10012950074

Negative monetary policy rates and systemic banks' risk-taking : evidence from the euro area securities register

Bubeck, Johannes; Maddaloni, Angela; Peydró, José-Luis - 2020

We show that negative monetary policy rates induce systemic banks to reach-for-yield. For identification, we exploit the introduction of negative deposit rates by the European Central Bank in June 2014 and a novel securities register for the 26 largest euro area banking groups. Banks with more...

Persistent link: https://www.econbiz.de/10012250648

Shadow banks and the risk-taking channel of monetary policy transmission in the Euro Area

Wischnewsky, Arina; Neuenkirch, Matthias - 2018 - First Draft: June 11, 2018

In this paper, we provide evidence for a risk-taking channel of monetary policy transmission in the euro area that works through an increase in shadow banks' total asset growth and their risk assets ratio. Our dataset covers the period 2003Q1 - 2017Q3 and includes, in addition to the standard...

Persistent link: https://www.econbiz.de/10011864635

Shadow banks and the risk-taking channel of monetary policy : transmission in the euro area

Wischnewsky, Arina; Neuenkirch, Matthias - 2018 - First draft: June 11, 2018

Persistent link: https://www.econbiz.de/10011866891