Fève, Patrick, Moura, Alban and Pierrard, Olivier (2022) The Fall in Shadow Banking and the Slow U.S. Recovery. Journal of Economic Dynamics and Control, vol. 139 (104404).

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Abstract

We argue that shocks to traditional and shadow banks were important drivers of the U.S. economy during the Great Recession and the Slow Recovery. This result follows from a DSGE model featuring a heterogeneous banking sector estimated from macroeconomic and financial observables. Our model attributes the Great Recession to negative shocks to the aggregate supply of loans. A more novel result is that a shock specific to shadow bank intermediation accounts for much of the Slow Recovery. Therefore, our estimates suggest that accounting for the collapse of shadow banking after the financial crisis is important to explain the subdued path of GDP, investment, and inflation several years into the recovery.

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• Shadow banking and the great recession: evidence from an estimated DSGE model. (deposited 13 Mar 2019 08:10)
  • The Fall in Shadow Banking and the Slow U.S. Recovery. (deposited 05 Apr 2023 07:56) [Currently Displayed]