منابع مشابه
Capital Flows and the Risk-Taking Channel of Monetary Policy
We study the dynamics linking monetary policy with bank leverage and show that adjustments in leverage act as the linchpin in the monetary transmission mechanism that works through uctuations in risk-taking. Motivated by the evidence, we formulate a model of the “risk-taking channel” of monetary policy in the international context that rests on the feedback loop between increased leverage of gl...
متن کاملRisk-Taking Channel of Monetary Policy: A Global Game Approach
We explore a global game model of the impact of monetary policy shocks. Risk-neutral asset managers interact with risk-averse households in a market with a risky bond and a oating rate money market fund. Asset managers are averse to coming last in the ranking of short-term performance. This friction injects a coordination element in asset managers portfolio choice that leads to large jumps in...
متن کاملLiquidity Risk and Monetary Policy
This paper provides a framework to analyse emergency liquidity assistance of central banks on financial markets in response to aggregate and idiosyncratic liquidity shocks. The model combines the microeconomic view of liquidity as the ability to sell assets quickly and at low costs and the macroeconomic view of liquidity as a medium of exchange that influences the aggregate price level of goods...
متن کاملInflation Risk and Optimal Monetary Policy
This paper shows that the optimal monetary policies recommended by New Keynesian models still imply a large amount of inflation risk. We calculate the term structure of inflation uncertainty in New Keynesian models when the monetary authority adopts the optimal policy. When the monetary policy rules are modified to include some weight on a price path, the economy achieves equilibria with substa...
متن کاملBailout Policy and Risk-Taking Behavior
• I am especially indebted to Robert Marquez for many insightful discussions. I am also grateful to Larry Ausubel, and Steven Ongena for their comments and suggestions. Any remaining errors are my own. Abstract We set up a model to analyze the banks' risk-taking and funding decisions (between insured and uninsured funds), in a regulatory framework that includes both unfairly priced deposit insu...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2013
ISSN: 1556-5068
DOI: 10.2139/ssrn.2230335