Arbeitspapier
Financial crisis interventions
This paper develops a model of an economy where bank credit supports both productive investment and individual consumption smoothing in the face of idiosyncratic income risk. Bank credit is constrained by bank equity capital. When policy-makers inject equity capital during financial crises, they trade off stimulating credit supply immediately against long-term distortions related to funding equity injections. I calibrate my model and show that the bank equity capital injection that maximizes average utilitarian welfare redistributes from the poor to the wealthy. While wealthy savers benefit immediately from an increased supply of safe assets, less affluent borrowers and savers suffer from long-term distortions.
- Sprache
-
Englisch
- Erschienen in
-
Series: Bank of Canada Staff Working Paper ; No. 2016-29
- Klassifikation
-
Wirtschaft
General Aggregative Models: Neoclassical
Business Fluctuations; Cycles
Financial Markets and the Macroeconomy
- Thema
-
Financial stability
Financial system regulation and policies
Lender of last resort
Credit and credit aggregates
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Schroth, Josef
- Ereignis
-
Veröffentlichung
- (wer)
-
Bank of Canada
- (wo)
-
Ottawa
- (wann)
-
2016
- DOI
-
doi:10.34989/swp-2016-29
- Handle
- Letzte Aktualisierung
-
20.09.2024, 08:21 MESZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Schroth, Josef
- Bank of Canada
Entstanden
- 2016
Ähnliche Objekte (12)
Financial crisis resolution
Household Stockholding Behavior During the Great Financial Crisis
Supervising financial regulators
Financial development beyond the formal financial market
Financial factors and labour market fluctuations
Monetary policy transmission during financial crises: An empirical analysis
Capital requirement and financial frictions in banking: Macroeconomic implications
Financial frictions, financial shocks and labour market fluctuations in Canada
Global inflation dynamics in the post-crisis period: What explains the twin puzzle?
Systemic risk and collateral adequacy: Evidence from the great crisis
Bank competition and international financial integration: Evidence using a new index
Financial conditions and the money-output relationship in Canada
Financial crisis resolution
Household Stockholding Behavior During the Great Financial Crisis
Supervising financial regulators
Financial development beyond the formal financial market
Financial factors and labour market fluctuations
Monetary policy transmission during financial crises: An empirical analysis
Capital requirement and financial frictions in banking: Macroeconomic implications
Financial frictions, financial shocks and labour market fluctuations in Canada
Global inflation dynamics in the post-crisis period: What explains the twin puzzle?
Systemic risk and collateral adequacy: Evidence from the great crisis
Bank competition and international financial integration: Evidence using a new index
Financial conditions and the money-output relationship in Canada
Financial crisis resolution
Household Stockholding Behavior During the Great Financial Crisis
Supervising financial regulators
Financial development beyond the formal financial market
Financial factors and labour market fluctuations
Monetary policy transmission during financial crises: An empirical analysis
Capital requirement and financial frictions in banking: Macroeconomic implications
Financial frictions, financial shocks and labour market fluctuations in Canada
Global inflation dynamics in the post-crisis period: What explains the twin puzzle?
Systemic risk and collateral adequacy: Evidence from the great crisis
Bank competition and international financial integration: Evidence using a new index