Download or read book Credit Frictions and Optimal Monetary Policy written by Vasco Cúrdia and published by . This book was released on 2009 with total page 82 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Credit Frictions and Optimal Monetary Policy written by and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Credit frictions housing prices and optimal monetary policy rules written by Caterina Mendicino and published by . This book was released on 2004 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Optimal Monetary Policy Rulses Asset Prices an Credit Frictions written by Ester Faia and published by . This book was released on 2005 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Optimal Monetary Policy Rules Asset Prices and Credit Frictions written by Ester Faia and published by . This book was released on 2005 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Financial Frictions and the Design of Optimal Monetary Policy written by Benjamin Schwanebeck and published by kassel university press GmbH. This book was released on 2018-07-02 with total page 6 pages. Available in PDF, EPUB and Kindle. Book excerpt: The financial crisis proved strikingly that the structure of the financial system and financial frictions play a crucial role for the effectiveness of monetary policy but also for system risk. Policymakers have overlooked financial intermediation and financial stability. Shadow banks and especially in the euro area the interbank market play a crucial role in propagating financial turmoil. This dissertation addresses these circumstances and contributes to the research on the optimal design of macroeconomic policy with a particular focus on monetary unions with heterogeneous financial sectors. As the consequences for monetary policy are at the heart of this thesis, I use state-of-the-art dynamic stochastic general equilibrium models and implement financial intermediation and frictions to analyze the transmission channels and interactions of (optimal) fiscal, monetary, macroprudential as well as unconventional monetary policy.

Download or read book Financial Frictions and Optimal Monetary Policy in an Open Economy written by Marcin Kolasa and published by . This book was released on 2016 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: A growing number of papers have studied positive and normative implications of financial frictions in DSGE models. We contribute to this literature by studying the welfare-based monetary policy in a two-country model characterized by financial frictions, alongside a number of key features, like capital accumulation, non-traded goods and foreign-currency debt denomination. We compare the cooperative Ramsey monetary policy with standard policy benchmarks (e.g. PPI stability) as well as with the optimal Ramsey policy in a currency area. We show that the two-country perspective offers new insights on the trade-offs faced by the monetary authority. Our main results are the following. First, strict PPI targeting (nearly optimal in our model if credit frictions are absent) becomes excessively procyclical in response to positive productivity shocks in the presence of financial frictions. The related welfare losses are non-negligible, especially if financial imperfections interact with non-tradable production. Second, (asymmetric) foreign currency debt denomination affects the optimal monetary policy and has important implications for exchange rate regimes. In particular, the larger the variance of domestic productivity shocks relative to foreign, the closer the PPI-stability policy is to the optimal policy and the farther is the currency union case. Third, we find that central banks should allow for deviations from price stability to offset the effects of balance sheet shocks. Finally, while financial frictions substantially decrease attractiveness of all price targeting regimes, they do not have a significant effect on the performance of a monetary union agreement.

Download or read book Optimal Monetary Policy and Imperfect Financial Markets written by Salem M. Abo-Zaid and published by . This book was released on 2016 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies optimal monetary policy in a model with credit frictions and money demand. We show that augmenting a standard New-Keynesian model with money demand and financial frictions generates a mechanism that, in equilibrium, gives rise to optimal negative nominal interest rates. In addition, we find that the tighter credit markets are, the lower the optimal nominal policy interest rate and the more likely is to be negative. Quantitatively, when credit constraints are binding, a standard calibration of the model generates an optimal nominal policy interest rate that is roughly -4% annually.

Download or read book Credit Frictions and Optimal Monetary written by V. Curdia and published by . This book was released on with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Credit Friction and Optimal Monetary Policy written by and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Optimal Monetary Policy with Uncertainty about Financial Frictions written by Richhild Moessner and published by . This book was released on 2006 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Optimal Monetary Policy in a Small Open Economy with Financial Frictions written by Rossana Merola and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Financial Frictions and Monetary Policy Conduct written by Matthieu Darracq Paries and published by . This book was released on 2018 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Thesis aims at evaluating monetary policy in presence of financial frictions both from an empirical and structural perspective. Along those lines, multi-variate time-series framework as well as model with more explicit theoretical foundations will be deployed. The Thesis presents original contributions in various fields of monetary and financial macroeconomics.The main motivation for the applied research presented in this Thesis are twofold. It responded both to the need for deeper research on macro-financial linkages and to the growing interest of policy institutions for the model-based policy advise. First, the Great recession and in particular, the typology of crisis episodes in Europe over the last decade, unveiled new challenges for monetary policy conduct, notably related to the prevalence of financial factors in cyclical fluctuations, the design of non-standard measures and the interactions with financial service policies. The second motivation has to do with the growing role for structural models in the preparation of monetary policy within central banks. Over the last decades, academic research and central bank practices have mutually benefited from strong synergies, whereby quantitative methods and theoretical advances have had a lasting influence on main preparation avenues for monetary policy making.In Chapter 1, a set of empirical studies intend to demonstrate the prevalence of financial shocks underlying the euro area macroeconomic performance during the Great recession. In particular, BVAR models can identify credit supply shocks and quantify their contribution to the various recessionary episodes over the last decade.Thereafter, Chapter 2 explores more structurally the transmission mechanism of financial shocks together with their heterogeneity across the euro area through the lens of DSGE models featuring a relevant set of demand-side as well as supply-side credit frictions.Against this background, the Thesis examine more normative aspects of monetary policy conduct starting with derivation of optimal monetary policy in selected DSGE models, which is the focus of Chapter 3. The Ramsey approach to optimal monetary provides a clear benchmark for formulating normative prescriptions. We analyse the main properties of the Ramsey allocation within a set of quantitative DSGE models, thereby bring new insight on various closed economy and open economy policy challenges.At times of crisis, as financial-driven recessions bring the monetary policy interest rates to their effective lower bound, central bank deployed a set of non-standard measures in order to engineer the intended policy accommodation. Chapter 4 presents several studies which extend DSGE models to analyse the role of non-standard monetary policy measures like asset purchase programmes or long-term liquidity operations. The credit channel of those measures will be the focus of the analysis. From a more normative standpoint, the optimal central bank asset purchase strategy will be derived.Finally, in Chapter 5, the normative assessment of monetary policy conduct in presence of financial frictions calls for considering strategic interactions with other policies, and notably macroprudential policy. Such interactions are all the more relevant when analysed in a monetary union context through multi-country DSGE models.

Download or read book Optimal Monetary Policy Asset Purchases and Credit Market Frictions written by Andreas Schabert and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Optimal Monetary Policy and Financial Frictions written by Nan Sheng and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Credit Frictions Debt Choice and the Business Cycle written by Julian Karl Douglas Wright and published by . This book was released on 1995 with total page 212 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Optimal Monetary Policy Rules and House Prices the Role of Financial Frictions written by Alessandro Notarpietro and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: