Loan production and monetary policy
| dc.contributor.author | Casares Polo, Miguel | |
| dc.contributor.author | Deidda, Luca | |
| dc.contributor.author | Galdón Sánchez, José Enrique | |
| dc.contributor.department | Economía | es_ES |
| dc.contributor.department | Ekonomia | eu |
| dc.date.accessioned | 2020-01-07T12:20:40Z | |
| dc.date.available | 2020-01-07T12:20:40Z | |
| dc.date.issued | 2019 | |
| dc.description.abstract | The authors examine optimal monetary policy in a New Keynesian model with unemployment and financial frictions where banks produce loans using equity as collateral. Firms and households demand loans to finance externally a fraction of their flows of expenditures. Our findings show amplifying business-cycle effects of a more rigid loan production technology. In the monetary policy analysis, the optimal rule clearly outperforms a Taylor-type rule. The optimized interest-rate response to the external finance premium turns significantly negative when either banking rigidities are high or when financial shocks are the only source of business cycle fluctuations. | en |
| dc.description.sponsorship | The authors are grateful to Banco de Espana for the grant on the project 'Politica monetaria en economias con fricciones financieras y bancarias.' Luca Deidda gratefully acknowledges financial support from the Italian Ministero dell'Universita, PRIN, Fondazione Banco di Sardegna, and Fundaçao para Ciencia ea Tecnologia, Portugal. Miguel Casares and Jose E. Galdon-Sanchez also acknowledge Spanish Ministerio de Economia for research project ECO2015-64330-P. | en |
| dc.format.extent | 41 p. | |
| dc.format.mimetype | application/pdf | en |
| dc.identifier.doi | 10.1017/S1365100516001139 | |
| dc.identifier.issn | 1365-1005 | |
| dc.identifier.uri | https://academica-e.unavarra.es/handle/2454/35997 | |
| dc.language.iso | eng | en |
| dc.publisher | Cambridge University Press | en |
| dc.relation.ispartof | Macroeconomic Dynamics, 23 (1), 101-143 | en |
| dc.relation.projectID | info:eu-repo/grantAgreement/MINECO//ECO2015-64330-P/ES/ | |
| dc.relation.publisherversion | https://doi.org/10.1017/S1365100516001139 | |
| dc.rights | © Cambridge University Press 2017 | en |
| dc.rights.accessRights | info:eu-repo/semantics/openAccess | |
| dc.subject | External finance | en |
| dc.subject | Optimal monetary policy | en |
| dc.subject | Business cycles | en |
| dc.title | Loan production and monetary policy | en |
| dc.type | info:eu-repo/semantics/article | |
| dc.type.version | info:eu-repo/semantics/acceptedVersion | |
| dspace.entity.type | Publication | |
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