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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Identification Number : 10.1016/j.jedc.2022.104404


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.

Item Type: Article
Language: English
Date: June 2022
Refereed: Yes
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 05 Apr 2023 07:56
Last Modified: 05 Apr 2023 07:57
OAI Identifier: oai:tse-fr.eu:126870
URI: https://publications.ut-capitole.fr/id/eprint/45161

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