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  <title>EconStor Collection:</title>
  <link rel="alternate" href="https://hdl.handle.net/10419/102286" />
  <subtitle />
  <id>https://hdl.handle.net/10419/102286</id>
  <updated>2026-04-29T12:23:01Z</updated>
  <dc:date>2026-04-29T12:23:01Z</dc:date>
  <entry>
    <title>Financial crisis, speculative bubbles and the functioning of financial markets</title>
    <link rel="alternate" href="https://hdl.handle.net/10419/148061" />
    <author>
      <name>Horvarth, Roman</name>
    </author>
    <id>https://hdl.handle.net/10419/148061</id>
    <updated>2023-11-19T02:08:46Z</updated>
    <published>2016-01-01T00:00:00Z</published>
    <summary type="text">Title: Financial crisis, speculative bubbles and the functioning of financial markets
Authors: Horvarth, Roman
Abstract: [Introduction] The recent global financial crisis has showed us how extremely costly financial crises are in terms of economic activity and overall welfare of citizens. It affected strongly the stability of selected European financial institutions as well as the debt management of various governments in Europe. The European Union has undertaken a vast series of steps to safeguard financial stability in Europe, both in the way how financial market supervision is institutionally structured and also in the way how financial market supervision is implemented. Macroprudential policies, which focus on promoting stability of financial system as a whole, has become to forefront. The financial crisis also materialized strongly in macroeconomic stability. The European Central Bank needed to implement large-scale non-standard monetary policy measures to support the euro area economic activity, to improve the functioning of monetary policy transmission mechanism and to reduce deflationary risks. Despite all the steps undertaken in safeguarding financial stability coupled with accommodative monetary policy, we still cannot say that the global financial crisis or its effects are over. Having the enormously negative effects of financial crises in mind, several attendant - both general and specific - questions for academia as well as for policy makers arise. [...]</summary>
    <dc:date>2016-01-01T00:00:00Z</dc:date>
  </entry>
  <entry>
    <title>Financial market dynamics and regulation</title>
    <link rel="alternate" href="https://hdl.handle.net/10419/150546" />
    <author>
      <name>Riedler, Jesper</name>
    </author>
    <id>https://hdl.handle.net/10419/150546</id>
    <updated>2023-11-27T02:50:21Z</updated>
    <published>2016-01-01T00:00:00Z</published>
    <summary type="text">Title: Financial market dynamics and regulation
Authors: Riedler, Jesper
Abstract: [Introduction] The current banking regulation laid down, for example, in the Capital Requirements Regulation and Directive (CRR/CRD IV) for the European Union, consist of a large number of detailed rules for diverse areas of bank risk such as market risk, liquidity risk, credit risk, and operational risk, just to mention the most important. Even for individual regulatory measures such as the minimum capital requirements, it is difficult to assess the effects on a single bank, but very hard to get an estimate for the complete banking sector. However, from an economic policy perspective it is necessary to know how a regulatory measure will affect economic development and growth. It would be of even higher importance to have such knowledge for the regulatory rulebook as a whole, but this seems to be far beyond the scope of theoretical or applied economic models. The aim of our project was to develop a multi-purpose agent-based model targeted to measure the effects of banking regulation, both for the banking sector and for the whole economy. A first important application is to find out if and how strongly banking regulation impacts monetary policy. In the years after the beginning of the financial market crises (i.e. in the years after 2008) the European Central Bank (ECB) did a good job in preventing a collapse of the banking sector in the Eurozone. Nevertheless, even after many years of very low costs of loans for private households and companies (both in nominal and real terms), growth rates of loans to the private sector and M3 are still below pre-crisis levels. Also inflation is still far below the target level of the ECB. This shows in a glance how difficult it is for the ECB to normalise the transmission mechanism of monetary policy. [...]</summary>
    <dc:date>2016-01-01T00:00:00Z</dc:date>
  </entry>
  <entry>
    <title>Monetary policy and the stock market: Insights from a model of endogenous business cycles</title>
    <link rel="alternate" href="https://hdl.handle.net/10419/148060" />
    <author>
      <name>Yanovski, Boyan</name>
    </author>
    <id>https://hdl.handle.net/10419/148060</id>
    <updated>2024-01-01T02:30:20Z</updated>
    <published>2016-01-01T00:00:00Z</published>
    <summary type="text">Title: Monetary policy and the stock market: Insights from a model of endogenous business cycles
Authors: Yanovski, Boyan
Abstract: [Key Takeaways] * Monetary policy might be ineffective in its attempt to influence the borrowing conditions over the business cycle because of the existence of adverse endogenous factors (like an endogenous risk premium, for example) counteracting monetary policy. * The evolution of the stock market over the business cycle can be considered an indicator of the extent to which monetary policy is able to affect the current borrowing conditions in the economy. * The pro-cyclical stock market observed in the US during the last 25 years in the presence of a counter-cyclical monetary policy can be considered evidence of monetary policy ineffectiveness and/or weak reactivity. * Monetary policy might be ineffective in reducing endogenous business cycle fluctuations because of the lags involved in its reactions and in the transmission process.</summary>
    <dc:date>2016-01-01T00:00:00Z</dc:date>
  </entry>
  <entry>
    <title>The European dimension: Consequences for European monetary policy</title>
    <link rel="alternate" href="https://hdl.handle.net/10419/150543" />
    <author>
      <name>De Grauwe, Paul</name>
    </author>
    <id>https://hdl.handle.net/10419/150543</id>
    <updated>2023-12-14T02:25:58Z</updated>
    <published>2016-01-01T00:00:00Z</published>
    <summary type="text">Title: The European dimension: Consequences for European monetary policy
Authors: De Grauwe, Paul
Abstract: [Introduction] The Eurozone creates a number of new challenges in policy-making in Europe. These challenges exist both for the monetary and the fiscal authorities. In this workpackage we aim at providing novel insights in the nature of these challenges using new approaches in modelling the macro economy. These new approaches highlight the importance of multiple equilibria, herd behaviour and animal spirits (market sentiments). The first challenge is for the monetary authorities to understand the nature of the transmission of monetary policies. We analyse this transmission process using a behavioural macroeconomic model in which animal spirits play a major role. We contrast this transmission process in a bank based with a market based financial model. As the Eurozone is mainly based on bank finance the comparison with a market based financial model will allow us to identify what is special in the monetary transmission process in the Eurozone. The second challenge has to do with crisis management. During financial crises panic and fear is likely to take over, creating a potential for self-fulfilling liquidity crises. These can push countries into a bad equilibrium that forces them into imposing excessive austerity thereby reinforcing deflationary dynamics. We provide evidence that these forces have been at work during the sovereign debt crisis of 2010-12. The third challenge relates to the governance of the Eurozone. It is clear that the Eurozone has not yet achieved a governance structure that will guarantee its long run survival. In a third contribution we use empirical evidence about the nature of economic shocks in the Eurozone to analyse how the Eurozone should be redesigned so as to become sustainable in the long run.</summary>
    <dc:date>2016-01-01T00:00:00Z</dc:date>
  </entry>
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