European Parliament Library

Using Credit Subsidies to Counteract a Credit Bust :, Evidence From Serbia, Jiri Podpiera

Abstract
Emerging markets are particularly vulnerable to boom-bust credit cycles, due to excessive capital flows, shallow equity markets, and companies' high leverage and open FX positions. While the policy debate on how to respond to boom-bust credit cycles remains unsettled, it has been conjectured that credit subsidies may provide a particularly effective policy tool to counter a credit bust. This paper reports on a rare policy experiment where credit subsidies were used to buffer the impact of the global financial crisis on Serbia in 2009. Model simulations suggest that credit subsidies in Serbia helped to mitigate the slump in output
Table Of Contents
Cover; Contents; I. Introduction; II. The Model of a Non-Financial Sector; A. Households; B. Companies; C. Banks; D. Equilibrium; E. The Role of the Exchange Rate; F. The Effects of Credit Subsidies; III. The Rest of the Economy; IV. Calibration and Simulation for Serbia; A. Credit Subsidy Schemes; B. Model Calibration; Tables; 1. Descriptive Statistics; C. Model's Fit; 2. Model's Fit; D. Subsidy Scheme Simulations; 3. Policy Simulations, the year 2009; V. Concluding Remarks; References
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (22 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781283565813

Library Locations

  • EP Library Strasbourg

    7 Place Adrien Zeller, Allée du Printemps, Strasbourg, F-67070, FR
    Borrow
  • EP Library Luxembourg

    Rue du Fort Thüngen, Luxembourg, L-1313, LU
    Borrow
  • EP Library Brussels

    60 rue Wiertz, Brussels, B-1047, BE
    Borrow