Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/69512
Authors: 
Fontana, Olimpia
Godin, Antoine
Year of Publication: 
2013
Series/Report no.: 
Economics Discussion Papers 2013-13
Abstract: 
This paper focuses on the different balance sheet management behavior of private banks and worker households, when assets are traded in the market. The authors take into consideration the securitization process, through which mortgage loans to households are converted into tradable securities which are held by investment banks in order to make profits. The demand for deposits by speculative households and realized capital gains on selling of mortgage-backed securities in the secondary market produce an inflation balloon in security markets, even though the authors apply the Basel III agreements to private banking behavior.
Subjects: 
securitization
stock-flow consistent modelling
active banking
JEL: 
E12
G11
E44
Creative Commons License: 
http://creativecommons.org/licenses/by/3.0/
Document Type: 
Working Paper

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