Arbeitspapier
(Un)anticipated monetary policy in a DSGE model with a shadow banking system
Motivated by the U.S. events of the 2000s, we address whether a too low for too long interest rate policy may generate a boom-bust cycle. We simulate anticipated and unanticipated monetary policies in state-of-the-art DSGE models and in a model with bond financing via a shadow banking system, in which the bond spread is calibrated for normal and optimistic times. Our results suggest that the U.S. boom-bust was caused by the combination of (i) interest rates that were too low for too long, (ii) excessive optimism and (iii) a failure of agents to anticipate the extent of the abnormally favourable conditions.
- ISBN
-
978-952-6699-04-2
- Sprache
-
Englisch
- Erschienen in
-
Series: Bank of Finland Research Discussion Papers ; No. 4/2013
- Klassifikation
-
Wirtschaft
Business Fluctuations; Cycles
Financial Markets and the Macroeconomy
Monetary Policy
Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies
- Thema
-
DSGE model
shadow banking system
too low for too long
boom-bust
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Verona, Fabio
Martins, Manuel M. F.
Drumond, Inês
- Ereignis
-
Veröffentlichung
- (wer)
-
Bank of Finland
- (wo)
-
Helsinki
- (wann)
-
2013
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
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Objekttyp
- Arbeitspapier
Beteiligte
- Verona, Fabio
- Martins, Manuel M. F.
- Drumond, Inês
- Bank of Finland
Entstanden
- 2013
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