Collateral constraints in a monetary economy
Web21 hours ago · New York City’s Trajectory Going into the Pandemic. In early 2024, the city’s economy was strong, following a more than two-decade boom interrupted only by the 2008-09 recession. In the decade leading up to the pandemic (2010-20), population grew by 7.7 percent citywide—its second-fastest pace since the 1920s—and Manhattan’s ... WebThe possibility that such a perverse relationship can give rise to multiple equilibria has been suggested heuristically by Jeanne and Korinek (2010) in the context of an economy with a stock collateral constraint and by Mendoza (2005) in the context of an economy with a flow collateral constraint.
Collateral constraints in a monetary economy
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WebSecond, the housing collateral constraint binds only occasionally. The estimation of the model involves inferring when the collateral constraint is binding and when it is slack … WebWe consider the effects of central-bank purchases of a risky asset, financed by issuing riskless nominal liabilities (reserves), as an additional dimension of policy alongside "conventional" monetary policy (central-bank control of the riskless nominal interest rate), in a general-equilibrium model of asset pricing and risk sharing with endogenous collateral …
WebFeb 1, 2024 · Interbank money markets have been subject to substantial impairments in the recent decade, such as a decline in unsecured lending and substantial increases in … WebThe purpose of this paper is to analyze the role of collateral constraints as a transmission mechanism of monetary shocks. We do this by introducing money in the heterogeneous …
WebJun 26, 2024 · Using Bayesian methods, we estimate a nonlinear general equilibrium model where occasionally binding collateral constraints on housing wealth drive an asymmetry in the link between housing prices and economic activity. The estimated model shows that, as collateral constraints became slack during the housing boom of 2001-2006, expanding … WebThese two collateral constraints can interact in important ways. The first is disintermediation: a fire sale of domestic assets causes banks to fail in their function of reallocating resources across the economy leading to wasted international collateral. The second is a dynamic effect. We show that firms in an economy with limited domestic ...
WebFeb 1, 2004 · By introducing the standard cash-in-advance constraint, Cordoba and Ripoll (2004) reveal the role of collateral constraints in transforming small monetary shocks …
WebThese two collateral constraints can interact in important ways. The first is disintermediation: a fire sale of domestic assets causes banks to fail in their function of … gxwho4fWebAbstract. The purpose of this paper is to analyze the role of collateral constraints as a transmission mechanism of monetary shocks. We do this by introducing money in the … gxwho8cWebAbstract. This paper studies the role of collateral constraints in transforming small monetary shocks into large persistent output fluctuations. We do this by introducing … gxwh water filter