Arbeitspapier
Public funding of banks and firms in a time of crisis
We study public funding of banks and non-financial firms in a time of crisis. We find that bank capitalization is more effective in stabilizing the economy than direct funding to firms, but it also creates larger distortions. We show that the optimal, social-welfare-maximizing, structure of a public funding program depends on its size. Small funding programs should target banks while large programs should be directed at non-financial firms.
- ISBN
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978-952-323-412-3
- Language
-
Englisch
- Bibliographic citation
-
Series: Bank of Finland Research Discussion Papers ; No. 8/2022
- Classification
-
Wirtschaft
Financial Markets and the Macroeconomy
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Financial Institutions and Services: Government Policy and Regulation
Corporate Finance and Governance: Government Policy and Regulation
Crisis Management
Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts
- Subject
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economic crises
optimal public funding
financial frictions
macro-financial linkages
- Event
-
Geistige Schöpfung
- (who)
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Haavio, Markus
Ripatti, Antti
Takalo, Tuomas
- Event
-
Veröffentlichung
- (who)
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Bank of Finland
- (where)
-
Helsinki
- (when)
-
2022
- Handle
- URN
-
urn:nbn:fi:bof-202206271310
- 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
- Arbeitspapier
Associated
- Haavio, Markus
- Ripatti, Antti
- Takalo, Tuomas
- Bank of Finland
Time of origin
- 2022
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