(Un)anticipated Monetary policy in a DSGE model with a shadow banking system (Bank of Finland Research Discussion Paper 4/2013)

• Tipo: Relatório Técnico
• Data: 2013

Autores

Fabio Verona (Autor) Outra; Manuel Mota Freitas Martins (Autor) FEP; Inês Drumond (Autor) FEP

Classificação Científica

FOS: Ciências sociais > Economia e gestão

CORDIS: Ciências Sociais > Economia

Outras Informações

Abstract (EN): Motivated by the U.S. events of the 2000s, we address whether a too low for too long interest rate policy may generate a boom-bust cycle. We simulate anticipated and unanticipated monetary policies in state-of-the-art DSGE models and in a model with bond financing via a shadow banking system, in which the bond spread is calibrated for normal and optimistic times. Our results suggest that the U.S. boom-bust was caused by the combination of (i) interest rates that were too low for too long, (ii) excessive optimism and (iii) a failure of agents to anticipate the extent of the abnormally favourable conditions.

Idioma: Inglês

Tipo (Avaliação Docente): Científica

Notas: Bank of Finland Research Discussion Paper 4/2013

Referência: http://www.suomenpankki.fi/en/julkaisut/tutkimukset/keskustelualoitteet/Documents/BoF_DP_1304.pdf

Nº de páginas: 40