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Modeling with Macro-Financial Linkages :, Credit and Policy Shocks in Emerging Markets, Jaromir Benes, Inci Ötker, David Vávra

Abstract
This paper develops a stylized, small, open economy macro model that incorporates an explicit and non-trivial role for financial intermediation. It illustrates how such a model could be used for policy analysis in an emerging market economy where policymakers are concerned about risks associated with rapid credit growth, financial dollarization, and foreign borrowing, while lacking traditional tools to effect monetary policy transmission, and hence could resort to more direct instruments, such as foreign exchange market intervention and regulatory and administrative measures. Calibrating the model to a stylized emerging European economy, the paper simulates real and financial sector implications of various external and policy-related shocks that could be used as input for monetary policy making
Table Of Contents
Contents; I. Introduction and Motivation; II. The Model with Financial Intermediation and Frictions; A. The Basic Structure of the Model; B. Description of the Model's Micro Foundations; C. Main Characteristics of Policy Transmission; III. Model Calibration and Properties; A. Parameterizing Steady State; Tables; 1. List of Main Behavioral Parameters and Their Baseline Calibration; B. Parameterizing Transitory Dynamics and Stochastic Properties; IV. Using the Model-Based Framework for Policy Analysis-Implications of a Credit Crunch; A. Credit Crunch Induced by Exogenous Shocks
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (36 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781451872705

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