Analysis of monetary policy and financial stability: a new paradigm

Arbeitspapier

This paper introduces agent heterogeneity, liquidity, and endogenous default to a DSGE framework. Our model allows for a comprehensive assessment of regulatory and monetary policy, as well as welfare analysis in the different sectors of the economy. Due to liquidity and endogenous default, the transmission mechanism of shocks is well defined, and their short to medium run effects on financial stability are properly captured.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 2885

Classification and Topics

• Classification: Wirtschaft ; General Equilibrium and Disequilibrium: General ; Interest Rates: Determination, Term Structure, and Effects ; Financial Markets and the Macroeconomy ; Monetary Policy, Central Banking, and the Supply of Money and Credit: General ; Financial Crises ; Financial Institutions and Services: General
• Subject: general equilibrium ; financial fragility ; monetary policy ; regulation

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Goodhart, Charles A. E. ; Osorio, Carolina ; Tsomocos, Dimitrios P.
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/30638
• Last update: 10.03.2025, 11:41 AM CET