Arbeitspapier
The financial (in)stability real interest rate, r**
We introduce the concept of a financial stability real interest rate using a macroeconomic banking model with an occasionally binding financing constraint, as in Gertler and Kiyotaki (2010). The financial stability interest rate, r**, is the threshold interest rate that triggers the constraint being binding. Increasing imbalances in the financial sector, measured by an increase in leverage, are accompanied by a lower threshold that could trigger financial instability events. We also construct a theoretical implied financial conditions index and show how it is related to the gap between the natural and financial stability interest rates.
- Language
-
Englisch
- Bibliographic citation
-
Series: Staff Report ; No. 946
- Classification
-
Wirtschaft
- Subject
-
r**
financial crises
financial stability
occasionally binding credit constraint
- Event
-
Geistige Schöpfung
- (who)
-
Akinci, Ozge
Benigno, Gianluca
Del Negro, Marco
Queralto, Albert
- Event
-
Veröffentlichung
- (who)
-
Federal Reserve Bank of New York
- (where)
-
New York, NY
- (when)
-
2020
- Handle
- Last update
- 10.03.2025, 11:41 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
- Akinci, Ozge
- Benigno, Gianluca
- Del Negro, Marco
- Queralto, Albert
- Federal Reserve Bank of New York
Time of origin
- 2020
Other Objects (12)
Monetary policy and financial (in)stability
Decomposing financial (in)stability in emerging economies
From banks' strategies to financial (in)stability
Linkages Between Fiscal Policy and Financial (In)Stability
What Predicts Financial (In)Stability? A Bayesian Approach
The bank liquidity channel of financial (in)stability
What predicts financial (in)stability? A Bayesian approach
Essays in real options and financial instability
How to measure financial (in)stability in emerging Europe?
Low interest rates and the implications of financial stability
COVID-19, policy interventions, credit vulnerabilities and financial (in)stability
Modeling financial instability
Monetary policy and financial (in)stability
Decomposing financial (in)stability in emerging economies
From banks' strategies to financial (in)stability
Linkages Between Fiscal Policy and Financial (In)Stability
What Predicts Financial (In)Stability? A Bayesian Approach
The bank liquidity channel of financial (in)stability
What predicts financial (in)stability? A Bayesian approach
Essays in real options and financial instability
How to measure financial (in)stability in emerging Europe?
Low interest rates and the implications of financial stability
COVID-19, policy interventions, credit vulnerabilities and financial (in)stability
Modeling financial instability
Monetary policy and financial (in)stability
Decomposing financial (in)stability in emerging economies
From banks' strategies to financial (in)stability
Linkages Between Fiscal Policy and Financial (In)Stability
What Predicts Financial (In)Stability? A Bayesian Approach
The bank liquidity channel of financial (in)stability
What predicts financial (in)stability? A Bayesian approach
Essays in real options and financial instability
How to measure financial (in)stability in emerging Europe?
Low interest rates and the implications of financial stability
COVID-19, policy interventions, credit vulnerabilities and financial (in)stability