Financial Frictions
Financial Shocks, Financial Frictions and Financial Intermediaries in DSGE Models: Comments on the Recent Literature
... a financial intermediary in its modeling. However, the financial sector plays a crucial role in capturing the key dynamic features of the business cycle as well as the behavior of financial flows ...
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Financial Frictions, the Phillips Curve and Monetary Policy
... of financial frictions for the optimality of the central bank ...canonical financial acceler- ator mechanism, focus solely on monetary policy and provide completely analytic results, including ...
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Contagion of Sovereign Default Risk: the Role of Two Financial Frictions
... international financial markets: the amount of borrowing from international financial markets must not exceed a certain fraction of the value of the ...two financial frictions is a key ...
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Three Essays on Macroeconomics and Financial Frictions.
... Financial frictions on the borrower side and impact for monetary policy transmission are also explored in recent empirical ...to financial and mortgage market ...to financial condition ...
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Financial Frictions on Capital Allocation: A Transmission Mechanism of TFP Fluctuations
... …nancial frictions distort a …rm’s production scale through new capital investment, we should expect to see monotonically increasing estimates of b along KZ quintile in Table 11, as those in Table ...…nancial ...
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Asset prices and monetary policy in a sticky price economy with financial frictions
... A recent study shows that equilibrium indeterminacy arises if monetary policy responds to asset prices, especially share prices, in a sticky-price economy. We show that equilibrium indeterminacy never arises if the ...
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World Financial Frictions and the Economy of the Czech Republic and Slovakia
... world financial frictions on the Czech economic activity and Slovak economic activity in the period 2001 – 2012 and, viceversa, the impact of every country overall economic activity on its interest spread ...
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Financial frictions and robust monetary policy in the models of New Keynesian framework
... how financial frictions affect robustness of monetary policy in DSGE models in the case of model ...of frictions I consider are financial accelerator and collateral ...with financial ...
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Essays On Taxation And Competition Under Firm Heterogeneity And Financial Frictions
... Our work also relates to an empirical literature aiming at estimating the elasticity of capital taxes on investment. The estimates (for publicly traded firms) range between -1 and -0.5 (see Hassett and Hubbard (2002) ). ...
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An asymmetric country model with financial frictions
... The foreign shock firstly propagates to the Australian real economy by the reduction of export demand due to the U.S. economic downturn. Foreign inflation decreases, leading to a drop in the relative price of foreign ...
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Essays In Macroeconomics With Financial Frictions
... that financial frictions play in the aggregate responses to a financial shock caused by a sharp increase in sovereign ...the financial shock. Section 1.2 showed how financial ...
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Natural Rate of Interest with Endogenous Growth, Financial Frictions and Trend Inflation
... In this paper we have analyzed, from a monetary policy point of view, the role of the natural rate of interest in a New Keynesian model with endogenous growth, …nancial frictions and trend in‡ation. First, we have ...
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Essays on financial frictions and productivity
... Finally, our paper also contributes to the burgeoning macro literature on the finance-growth nexus. Best practice in the recent literature on finance and growth uses industry-level data to overcome endogeneity problems ...
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Financial frictions and the role of investment-specific technology shocks in the business cycle
... Using a data set that extends from 1954Q3 through to 2011Q4 for the United States (US), we estimate our amended model and compute the contribution of structural shocks to the cyclical variation of output, investment, ...
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Monetary policy and growth with trend inflation and financial frictions
... Macroeconomic research has developed accurate models to evaluate monetary policy including nominal rigidities, among them, Christiano et al. (2005) and Smets and Wouters (2007). However, the assumption that …nancial ...
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Financial frictions in the Euro Area and the United States: a Bayesian assessment
... nancial frictions is favored by the ...nancial frictions à la Bernanke et ...nancial frictions can be explained by: (i) the established importance of the BGG approach in the mainstream DSGE ...
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On financial frictions and firm market power (927 KB)
... We build a static general-equilibrium model with monopolistically competitive fi rms that borrow funds from competitive banks in an economy subject to fi nancial frictions. These frictions are due to non ...
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Trade Openness and the Cost of Sudden Stops: The Role of Financial Frictions
... However, if the economy has to pay additional expenses to obtain foreign debt, the larger additional volatility of output usually results in a smaller cost in a less open economy, which implies the optimality of a closed ...
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Financial frictions and the zero lower bound on interest rates: a DSGE analysis
... Nevertheless, the bene…ts of history-dependent rules depends on the as- sumption that expectations are forward-looking. For example, the less forward- looking are expectations, the weaker will be the e¤ect on future ...
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Nominal and financial frictions in international business cycle: A DSGE approach
... the financial friction in terms of a borrowing constraint: some agents in the economy can borrow only a fraction m of the collateral, which, consistently with the empirical evidence on the ...
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