Download or read book Endogenous Financial Intermediation written by and published by Fundacion BBVA. This book was released on with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Endogenous Financial Intermediation and Real Effects of Capital Account Liberalization written by George Alessandria and published by . This book was released on 2009 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: We consider lending and investment under asymmetric information in a small, developing economy. We allow different forms of financing contracts to arise endogenously in the credit market. Financial intermediaries mitigate a moral hazard problem in investment choice through costly monitoring and liquidation. We then examine the impact of opening the capital account on both welfare and the structure of lending contracts. Depending on the quality and cost of the monitoring technology, liberalizing the capital account may improve or worsen the efficiency of financial intermediaries, leading to an improvement or worsening of the aggregate composition of investment projects. Efficient financial intermediaries are neither necessary nor sufficient for a capital account liberalization to improve welfare.
Download or read book Excessive Financial Intermediation in a Model with Endogenous Liquidity written by Maya Eden and published by . This book was released on 2012 with total page 61 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Misallocation of Capital in a Model of Endogenous Financial Intermediation and Insurance written by Radim Bohacek and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book A Note on Endogenous Growth Inflation and Financial Intermediation written by Hector Rubini and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper presents an extension of Lucas' model of endogenous growth with human capital, showing some linkages with financial intermediation. The model offered in this paper does not imply a univocal relationship between the rates of inflation and economic growth, but it bears an explicit Baumol-Tobin money demand function and a negative association between transactions costs and economic growth. The impact on growth of financial liberalization and every other policy intended to lower transactions costs is twofold. There is a direct positive effect and an ambiguous indirect effect through real balances depending on: (a) the inflation-elasticity of money demand function and the level of the rate of inflation, and (b) the indirect effects on inflation through the marginal productivity of physical capital. Changes in transaction costs do not alter the stock of real balances when the indirect effect through the marginal productivity of physical capital is negligible. In the presence of rational expectations, the effect of the rate of inflation on growth is not definite because the inflation tax revenues exhibit a Laffer curve shape.=20 Complementary simulations with data from the Argentine economy show that the effect of increases in public expenditure on education is not as significant as increases in the external effects of education. Unfortunately it is not easy to separate those effects and to foresee the impact of financial liberalizations. A promising way could be the design of cost efficient court procedures and regulations, but it exceeds the scope of this paper.
Download or read book Government Financing in an Endogenous Growth Model with Financial Market Restrictions written by Marco Espinosa-Vega and published by . This book was released on 2000 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Fiscal and Monetary Policy Interactions in an Endogenous Growth Model with Financial Intermediaries written by Marco A. Espinosa and published by . This book was released on 1995 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Financial Intermediation and Economic Growth Within an Oligopolistic Financial Framework written by Carlos Gerardo Acevedo Flores and published by . This book was released on 2003 with total page 268 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Handbook of Monetary Economics 3A written by and published by Elsevier. This book was released on 2010-12-08 with total page 754 pages. Available in PDF, EPUB and Kindle. Book excerpt: What tools are available for setting and analyzing monetary policy? World-renowned contributors examine recent evidence on subjects as varied as price-setting, inflation persistence, the private sector's formation of inflation expectations, and the monetary policy transmission mechanism. Stopping short of advocating conclusions about the ideal conduct of policy, the authors focus instead on analytical methods and the changing interactions among the ingredients and properties that inform monetary models. The influences between economic performance and monetary policy regimes can be both grand and muted, and this volume clarifies the present state of this continually evolving relationship. Explores the models and practices used in formulating and transmitting monetary policies Raises new questions about the volume, price, and availability of credit in the 2007-2010 downturn Questions fiscal-monetary connnections and encourages new thinking about the business cycle itself Observes changes in the formulation of monetary policies over the last 25 years
Download or read book Financial Intermediation and Monetary Policies in the World Economy written by Vittorio Grilli and published by . This book was released on 1991 with total page 64 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper we investigate the role of credit institutions in transmitting monetary shocks to the domestic economy and to the rest of the world output. In modeling the monetary and financial sector of the economy we distinguish between monetary injections via lump-sum transfers to individuals and those via increased credit to the commercial banking sector in the form of discount window operations. Appropriately, we distinguish between the discount rate of the central bank and the lending and borrowing interest rates of commercial banks, which, we assume, are also subject to reserves requirements. We find that a steady state increase in monetary injections via increases in domestic credit leads to an increase in domestic output. On the other hand, we find that an increase in the steady state level of monetary transfers reduces the level of output.
Download or read book Uncertainty and Investment written by Sophia Chen and published by International Monetary Fund. This book was released on 2015-03-20 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: Rollover risk imposes market discipline on banks’ risk-taking behavior but it can be socially costly. I present a two-sided model in which a bank simultaneously lends to a firm and borrows from the short-term funding market. When the bank is capital constrained, uncertainty in asset quality and rollover risk create a negative externality that spills over to the real economy by ex ante credit contraction. Macroprudential and monetary policies can be used to reduce the social cost of market discipline and improve efficiency.
Download or read book Endogenous Market Structures and Financial Development written by Zsolt Becsi and published by . This book was released on 1998 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book An Endogenous Growth Model of Money Banking and Financial Repression written by Marco Espinosa and published by . This book was released on 1996 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Endogenous Money in the Age of Financial Liberalization written by and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper reports results that show a much weakened statistical relationship between total bank credit, total deposits and the broad money supply for the period after 1995 for the US, where no statistical causation can be discerned in either direction. This has been the result of the changing nature of the credit creation process where banks have acquired almost total independence from required reserves and core deposits in extending credit, and even an ability to circumvent the constraint posed by capital requirements through asset securitization, giving rise to an explosive increase in nonbank intermediation. As a result, the expansion of bank credit did not result in a commensurate increase of bank deposits because financial intermediation spilled over to nondepository institutions, and with the growing importance of nonbank deposits in M3, broad money supply became broader than banks' total deposits. -- Endogenous Supply of Money ; Broad Money ; Financial Intermediation ; Asset Securitization
Download or read book Regulation of Financial Intermediaries in Emerging Markets written by T T Ram Mohan and published by SAGE Publications Pvt. Limited. This book was released on 2005-05-27 with total page 272 pages. Available in PDF, EPUB and Kindle. Book excerpt: The regulation of financial intermediaries continues to pose significant challenges to policymakers the world over. The task is especially difficult in emerging markets, where various factors—including macroeconomic volatility, relative under-capitalization of banks, the absence of market discipline and lax supervision—combine to render the banking system fragile. As was evident in the East Asian crisis of the late nineties, this can increase manifold the adverse effects of economic shocks. Taking stock of several important issues in the regulation of financial intermediaries in emerging markets, this volume: - Outlines the direction in which financial regulation should evolve in those markets; - Addresses themes related to optimal regulation as well as issues specific to regulation in the Indian context; - Identifies key elements in the best practices regulation in emerging markets; and - Proposes an innovative approach for setting limits to NPAs in banks. Overall, the original essays gathered here provide a comprehensive account of various important issues involved in regulating financial intermediaries and makes valuable and practical suggestions on how to improve regulation in emerging markets. An important feature of the volume is that it brings together both, scholars from academia and finance professionals from various multilateral agencies. As a consequence, it provides a fine balance between cross-country empirical evidence and conceptual contributions.
Download or read book Effects of the Monetary Base and Financial Intermediation on Output and Price Level in a Simple General Equilibrium Model written by Vei-Lin Chan and published by . This book was released on 1994 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book An Endogenous Growth Model of Money Banking and Financial Repression written by Marco A. Espinosa-Vega and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper, we develop an endogenous growth model with financial intermediation to examine the effects of financial repression on growth, inflation, and welfare. By limiting the liquidity provision, binding reserve requirements always suppress economic growth while their effect on inflation is a function, among other things, of the degree of repression. For example, contrary to previous claims, if financial repression is severe enough so that an informal financial sector emerges, liberalization is inflationary. Notwithstanding, liberalization in these cases is always welfare improving. Finally, we characterize the condition that gives rise to a unique optimal level of binding reserve requirements, i.e., the optimal degree of quot;moderatequot; financial repression.
