Leaning Against Windy Bank Lending PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Leaning Against Windy Bank Lending PDF full book. Access full book title Leaning Against Windy Bank Lending by Mr.Giovanni Melina. Download full books in PDF and EPUB format.
Author: Mr.Giovanni Melina
Publisher: International Monetary Fund
ISBN: 1484312678
Category : Business & Economics
Languages : en
Pages : 68
Get Book Here
Book Description
Using an estimated dynamic stochastic general equilibrium model with banking, this paper first provides evidence that monetary policy reacted to bank loan growth in the US during the Great Moderation. It then shows that the optimized simple interest-rate rule features no response to the growth of bank credit. However, the welfare loss associated to the empirical responsiveness is small. The sources of business cycle fluctuations are crucial in determining whether a “leaning-against-the-wind” policy is optimal or not. In fact, the predominant role of supply shocks in the model gives rise to a trade-off between inflation and financial stabilization.
Author: Mr.Giovanni Melina
Publisher: International Monetary Fund
ISBN: 1484312678
Category : Business & Economics
Languages : en
Pages : 68
Get Book Here
Book Description
Using an estimated dynamic stochastic general equilibrium model with banking, this paper first provides evidence that monetary policy reacted to bank loan growth in the US during the Great Moderation. It then shows that the optimized simple interest-rate rule features no response to the growth of bank credit. However, the welfare loss associated to the empirical responsiveness is small. The sources of business cycle fluctuations are crucial in determining whether a “leaning-against-the-wind” policy is optimal or not. In fact, the predominant role of supply shocks in the model gives rise to a trade-off between inflation and financial stabilization.
Author: Mr.Giovanni Melina
Publisher: International Monetary Fund
ISBN: 148431445X
Category : Business & Economics
Languages : en
Pages : 68
Get Book Here
Book Description
Using an estimated dynamic stochastic general equilibrium model with banking, this paper first provides evidence that monetary policy reacted to bank loan growth in the US during the Great Moderation. It then shows that the optimized simple interest-rate rule features no response to the growth of bank credit. However, the welfare loss associated to the empirical responsiveness is small. The sources of business cycle fluctuations are crucial in determining whether a “leaning-against-the-wind” policy is optimal or not. In fact, the predominant role of supply shocks in the model gives rise to a trade-off between inflation and financial stabilization.
Author: Giovanni Melina
Publisher:
ISBN:
Category :
Languages : en
Pages : 56
Get Book Here
Book Description
Using an estimated dynamic stochastic general equilibrium model with banking, this paper first provides evidence that monetary policy reacted to bank loan growth in the US during the Great Moderation. It then shows that the optimized simple interest-rate rule features virtually no response to the growth of bank credit. However, the welfare loss associated to the empirical responsiveness is small. The sources of business cycle fluctuations are crucial in determining whether a “leaning-against-the-wind” policy is optimal or not. In fact, the predominant role of supply shocks in the model gives rise to a trade-off between inflation and financial stabilization.
Author: Mr.Lars E. O. Svensson
Publisher: International Monetary Fund
ISBN: 1498314783
Category : Business & Economics
Languages : en
Pages : 76
Get Book Here
Book Description
“Leaning against the wind” (LAW) with a higher monetary policy interest rate may have benefits in terms of lower real debt growth and associated lower probability of a financial crisis but has costs in terms of higher unemployment and lower inflation, importantly including a higher cost of a crisis when the economy is weaker. For existing empirical estimates, costs exceed benefits by a substantial margin, even if monetary policy is nonneutral and permanently affects real debt. Somewhat surprisingly, less effective macroprudential policy and generally a credit boom, with resulting higher probability, severity, or duration of a crisis, increases costs of LAW more than benefits, thus further strengthening the strong case against LAW.
Author: International Monetary Fund. Research Dept.
Publisher: International Monetary Fund
ISBN: 1484327292
Category : Business & Economics
Languages : en
Pages : 15
Get Book Here
Book Description
The Fall 2017 IMF Research Bulletin includes a Q&A article covering "Seven Questions on the Globalization of Farmland" by Christian Bogmans. The first research summary, by Manmohan Singh and Haobing Wang is "Central Bank Balance Sheet Policies: Some Policy Implications." The second research summary is "Leaning Against the Windy Bank Lending" by Giovanni Melina and Stefania Villa. A listing of new IMF Working Papers and Staff Discussion Notes is featured, as well as new titles from IMF Publications. Information on IMF Economic Review is also included.
Author: Pierre-Olivier Weill
Publisher:
ISBN:
Category :
Languages : en
Pages : 67
Get Book Here
Book Description
During financial disruptions, market makers provide liquidity by absorbing external selling pressure. They buy when the pressure is large, accumulate inventories, and sell when the pressure alleviates. This paper studies optimal dynamic liquidity provision in a theoretical market setting with large and temporary selling pressure, and order-execution delays. I show that competitive market makers offer the socially optimal amount of liquidity, provided they have access to sufficient capital. If raising capital is costly, this suggests a policy role for lenient central bank lending during financial disruptions.
Author: Alessandro Cantelmo
Publisher: International Monetary Fund
ISBN: 1475584830
Category : Business & Economics
Languages : en
Pages : 33
Get Book Here
Book Description
In an estimated two-sector New-Keynesian model with durable and nondurable goods, an inverse relationship between sectoral labor mobility and the optimal weight the central bank should attach to durables inflation arises. The combination of nominal wage stickiness and limited labor mobility leads to a nonzero optimal weight for durables inflation even if durables prices were fully flexible. These results survive alternative calibrations and interestrate rules and point toward a non-negligible role of sectoral labor mobility for the conduct of monetary policy.
Author: J. Doyne Farmer
Publisher:
ISBN: 1108830730
Category : Mathematics
Languages : en
Pages : 729
Get Book Here
Book Description
Discover current uses and future development of stress tests, the most innovative regulatory tool to prevent and fight financial crises.
Author: Mr.Itai Agur
Publisher: International Monetary Fund
ISBN: 1484378385
Category : Business & Economics
Languages : en
Pages : 29
Get Book Here
Book Description
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 shorter-lived than otherwise. By keeping cuts brief, monetary policy tightens as soon as bank risk appetite heats up. Within this shorter time span, cuts must then be deeper than otherwise to also achieve standard objectives. Finally, we analyze how robust this result is to the presence of a bank regulatory tool, and provide a parameterized example.
Author: Gundbert Scherf
Publisher: Springer Science & Business Media
ISBN: 3658009837
Category : Business & Economics
Languages : en
Pages : 273
Get Book Here
Book Description
Due to the lack of political salience that financial stability policy enjoys in tranquil economic times, this policy field lends itself particularly well to capture – the more so the more important the role of banks is in the financial system. Gundbert Scherf’s research focuses on this nexus between integrated banking, supranational monetary policy and national banking regulation. He finds that national level differences in financial systems and related institutions explain and drive variation in regulatory financial stability policy across countries.
