The macroeconomic effects of shadow banking panics

Arbeitspapier

We study the effects of shadow banking panics in a macroeconomic model with a rich financial system, including deposit-financed retail banks and wholesale-financed shadow banks. The model can quantitatively match the dynamics of key variables around the US financial crisis. Wholesale funding market interventions akin to those implemented by the Federal Reserve in 2008 reduced the fall in output by about half a percentage point. Generally, central bank interventions reduce output volatility and the likelihood of banking panics.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Danmarks Nationalbank Working Papers ; No. 158

Classification and Topics

• Classification: Wirtschaft ; Financial Markets and the Macroeconomy ; Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies ; Financial Institutions and Services: Government Policy and Regulation
• Subject: Financial Institutions ; Financial Stability ; Interconnectedness ; Monetary Policy

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Poeschl, Johannes
• Event: Veröffentlichung
• (who): Danmarks Nationalbank
• (where): Copenhagen
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/227876
• Last update: 10.03.2025, 11:42 AM CET