Tools
Tools
Fève, Patrick
, Moura, Alban and Pierrard, Olivier
(2019)
Financial regulation and shadow banking: A Small-Scale DSGE Perspective.
Journal of Economic Dynamics and Control, vol. 101.
pp. 130-144.
This is the latest version of this item.
Preview |
Text
Download (364kB) | Preview |
Abstract
This paper estimates a small-scale DSGE model of the US economy with interacting traditional and shadow banks. We find that shadow banks amplify the transmission of structural shocks by helping escape constraints from traditional intermediaries. We show how this leakage toward shadow entities reduces the ability of macro-prudential policies targeting traditional credit to reduce economic volatility. A counterfactual experiment suggests that a countercyclical capital buffer, if applied only to traditional banks, would have in fact amplified the boom-bust cycle associated with the financial crisis of 2007-2008. On the other hand, a broader regulation scheme targeting both traditional and shadow credit would have helped stabilize the economy.
| Item Type: | Article |
|---|---|
| Sub-title: | A Small-Scale DSGE Perspective |
| Language: | English |
| Date: | April 2019 |
| Refereed: | Yes |
| Uncontrolled Keywords: | Shadow Banking, DSGE models, Macro-prudential Policy |
| JEL Classification: | C32 - Time-Series Models E32 - Business Fluctuations; Cycles |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Site: | UT1 |
| Date Deposited: | 06 Feb 2019 14:45 |
| Last Modified: | 01 Jul 2021 14:18 |
| OAI Identifier: | oai:tse-fr.eu:33358 |
| URI: | https://publications.ut-capitole.fr/id/eprint/31273 |
Available Versions of this Item
-
Financial Regulation and Shadow Banking. (deposited 14 Mar 2018 13:42)
- Financial regulation and shadow banking. (deposited 06 Feb 2019 14:45) [Currently Displayed]
