Financial disruption and state dependent credit policy
نویسندگان
چکیده
منابع مشابه
Credit Policy in times of Financial Distress
This essay evaluates two central bank policy tools, capital requirements and lending of last resort, designed to avert financial panics in the context of endowment economies with complete markets and limited borrower commitment. Credit panics are self-fulfilling shocks to expected credit conditions which cause transitions from an optimal but fragile steady state to a suboptimal state with zero ...
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Two distinct credit channels for monetary policy have been described.’ Both of these channels are based on lending problems associated with asymmetric information and control.2 The cost of acquiring information and controlling borrower’s behavior drives a wedge between the cost of internal and external finance. For some borrowers the premium for external finance is so large that it is impractic...
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ژورنال
عنوان ژورنال: Economic Modelling
سال: 2018
ISSN: 0264-9993
DOI: 10.1016/j.econmod.2017.07.018