Monetary Policy and Macroprudential Regulation with Financial Frictions - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Monetary Policy and Macroprudential Regulation with Financial Frictions write by Pierre-Richard Agenor. This book was released on 2020-11-10. Monetary Policy and Macroprudential Regulation with Financial Frictions available in PDF, EPUB and Kindle. An integrated analysis of how financial frictions can be accounted for in macroeconomic models built to study monetary policy and macroprudential regulation. Since the global financial crisis, there has been a renewed effort to emphasize financial frictions in designing closed- and open-economy macroeconomic models for monetary and macroprudential policy analysis. Drawing on the extensive literature of the past decade as well as his own contributions, in this book Pierre-Richard Age&́nor provides a unified set of theoretical and quantitative macroeconomic models with financial frictions to explore issues that have emerged in the wake of the crisis. These include the need to understand better how the financial system amplifies and propagates shocks originating elsewhere in the economy; how it can itself be a source of aggregate fluctuations; the extent to which central banks should account for financial stability considerations in the conduct of monetary policy; whether national central banks and regulators should coordinate their policies to promote macroeconomic and financial stability; and how much countercyclical macroprudential policies should be coordinated at the international level to mitigate financial spillovers across countries.
Monetary Policy and Macroprudential Regulation with Financial Frictions
Monetary Policy and Macroprudential Regulation with Financial Frictions - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Monetary Policy and Macroprudential Regulation with Financial Frictions write by Pierre-Richard Agénor. This book was released on 2020. Monetary Policy and Macroprudential Regulation with Financial Frictions available in PDF, EPUB and Kindle. "A monograph that accounts for financial frictions in some of the most-used macroeconomic models. An attempt to bring practical reality into macroeconomic theory"--
Informality, Frictions, and Macroprudential Policy
Informality, Frictions, and Macroprudential Policy - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Informality, Frictions, and Macroprudential Policy write by Moez Ben Hassine. This book was released on 2019-11-27. Informality, Frictions, and Macroprudential Policy available in PDF, EPUB and Kindle. We analyze the effects of macroprudential policies through the lens of an estimated dynamic stochastic general equilibrium (DSGE) model tailored to developing markets. In particular, we explicitly introduce informality in the labor and goods markets within a small open economy embedding financial frictions, nominal and real rigidities, labor search and matching, and an explicit banking sector. We use the estimated version of the model to run welfare analysis under optimized monetary and macroprudential rules. Results show that although informality reduces the efficiency of macroprudential policies following a convex fashion, combining the latter with an inflation targeting objective could be beneficial.
Monetary and Macroprudential Policies to Manage Capital Flows
Monetary and Macroprudential Policies to Manage Capital Flows - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Monetary and Macroprudential Policies to Manage Capital Flows write by Juan Pablo Medina Guzman. This book was released on 2014-02-12. Monetary and Macroprudential Policies to Manage Capital Flows available in PDF, EPUB and Kindle. We study interactions between monetary and macroprudential policies in a model with nominal and financial frictions. The latter derive from a financial sector that provides credit and liquidity services that lead to a financial accelerator-cum-fire-sales amplification mechanism. In response to fluctuations in world interest rates, inflation targeting dominates standard Taylor rules, but leads to increased volatility in credit and asset prices. The use of a countercyclical macroprudential instrument in addition to the policy rate improves welfare and has important implications for the conduct of monetary policy. “Leaning against the wind” or augmenting a standard Taylor rule with an argument on credit growth may not be an effective policy response.
Money: Theory and Practice
Money: Theory and Practice - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Money: Theory and Practice write by Jin Cao. This book was released on 2019-12-07. Money: Theory and Practice available in PDF, EPUB and Kindle. This textbook provides an introduction to modern monetary economics for advanced undergraduates, highlighting the lessons learned from the recent financial crisis. The book presents both the core New Keynesian model and recent advances, taking into account financial frictions, and discusses recent research on an intuitive level based on simple static and two-period models, but also prepares readers for an extension to a truly dynamic analysis. Further, it offers a systematic perspective on monetary policy, covering a wide range of models to help readers gain a better understanding of controversial issues. Part I examines the long-run perspective, addressing classical monetary policy issues such as determination of the price level and interaction between monetary and fiscal policy. Part II introduces the core New Keynesian model, characterizing optimal monetary policy to stabilize short-term shocks. It discusses rules vs. discretion and the challenges arising from control errors, imperfect information and robustness issues. It also analyzes optimal control in the presence of an effective lower bound. Part III focuses on modelling financial frictions. It identifies the transmission mechanisms of monetary policy via banking and introduces models with incomplete markets, principal-agent problems, maturity mismatch and leverage cycles, to show why investors’ and intermediaries’ own stakes play a key role in lending with pro-cyclical features. In addition, it presents a tractable model for handling liquidity management and demonstrates that the need to sell assets in crisis amplifies the volatility of the real economy. Lastly, the book discusses the relation between monetary policy and financial stability, addressing systemic risk and the role of macro-prudential regulation.
