Publication
A Tale of Two Policies: Prudential Regulation and Monetary Policy with Fragile Banks
by Ignazio Angeloni on 22 October 2009
Download: English
Filed in: EXTERNAL PUBLICATIONS
Topics: Budgetary and monetary policies, Financial markets and regulation
In a paper co-written with Ester Faia of Geothe University Frankfurt, Visiting Fellow Ignazio Angeloni introduces banks into a standard DSGE model and uses this framework to study the role of banks in the transmission of shocks, the effects of monetary policy when banks are exposed to runs, and the interplay between monetary policy and Basel-like capital ratios.