Preprint
Monetary policy and cross-border interbank market fragmentation: lessons from the crisis
We present a two-country model with an enhanced banking sector featuring risky lending and cross-border interbank market frictions. We find that (i) the strength of the financial accelerator, when applied to banks operating under uncertainty in an interbank market, will critically depend on the economic and financial structure of the economy; (ii) adverse shocks to the real economy can be the source of banking crisis, causing an increase in interbank funding costs, aggravating the initial shock; and (iii) asset purchases and central bank long-term refinancing operations can be effective substitutes for, or supplements to, conventional monetary policy.
- Language
-
Englisch
- Classification
-
Wirtschaft
Financial Markets and the Macroeconomy
Monetary Policy
Current Account Adjustment; Short-term Capital Movements
Financial Aspects of Economic Integration
- Subject
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Interbank market
monetary union
financial frictions
cross-border capital flows
unconventional monetary policy
- Event
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Geistige Schöpfung
- (who)
-
Blattner, Tobias
Swarbrick, Jonathan
- Event
-
Veröffentlichung
- (who)
-
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
- (where)
-
Kiel, Hamburg
- (when)
-
2017
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Preprint
Associated
- Blattner, Tobias
- Swarbrick, Jonathan
- ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
Time of origin
- 2017
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