Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/77930
Authors: 
Spahn, Peter
Year of Publication: 
2013
Series/Report no.: 
FZID Discussion Paper 76-2013
Abstract: 
A hybrid standard macro model is supplemented by an explicit analysis of bank lending, based on a five-position aggregative balance sheet. In the model's two versions credit supply is based on a leverage targeting rule or on simple optimisation, taking into account lending risks and funding costs. Model simulations explore consequences of supply and demand disturbances, discretionary interest rate moves, asset valuation and credit risk shocks. Besides standard Taylor policies, the paper compares the relative efficiency of additional stabilisation tools like external-funding taxes and anti-cyclical leverage regulation. Quantitative restrictions for bank activities seem to be useful.
Subjects: 
Taylor rule
Leverage targeting
Financial market shocks
Funding costs
Endogenous money
JEL: 
E1
E5
G2
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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