Countercyclical Liquidity Policy and Credit Cycles: Evidence from Macroprudential and Monetary Policy in Brazil

Arbeitspapier

We show that countercyclical liquidity policy smooths credit supply cycles, with stronger crisis effects. For identification, we exploit the Brazilian supervisory credit register and liquidity policy changes on reserve requirements, that affected banks differentially and have a monetary and prudential purpose. Liquidity policy strongly attenuates both the credit crunch in bad times and high credit supply in booms. Strong economic effects are twice as large during the crisis easing than during the boom tightening. Finally, in crises, liquidity easing: increase less credit supply by more financially constrained banks; and collateral requirements increase substantially, especially by banks providing higher credit supply.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Economic Working Paper Series ; No. 1698

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Money Supply; Credit; Money Multipliers ; Monetary Policy ; Central Banks and Their Policies ; Financial Crises ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Financial Institutions and Services: Government Policy and Regulation
• Thema: liquidity ; reserve requirements ; credit cycles ; macroprudential and monetary policy

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Blanco Barroso, Joao ; Barbone Gonzalez, Rodrigo ; Peydró, José-Luis ; Nazar van Doornik, Bernardus
• Ereignis: Veröffentlichung
• (wer): Universitat Pompeu Fabra (upf), Department of Economics and Business
• (wo): Barcelona
• (wann): 2019

Weitere Informationen

• Handle: http://hdl.handle.net/10419/216792
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ