de Walque, Gregory
[Verfasser:in]
;
Pierrard, Olivier
[Sonstige Person, Familie und Körperschaft];
Rouabah, Abdelaziz
[Sonstige Person, Familie und Körperschaft]
Financial (In)Stability, Supervision and Liquidity Injections
Erschienen in:National Bank of Belgium Working Paper ; No. 148
Umfang:
1 Online-Ressource (37 p)
Sprache:
Englisch
DOI:
10.2139/ssrn.1685125
Identifikator:
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 16, 2008 erstellt
Beschreibung:
This paper develops a dynamic stochastic general equilibrium model with interactions between an heterogeneous banking sector and other private agents. We introduce endogenous default probabilities for both firms and banks, and allow for bank regulation and liquidity injection into the interbankmarket. Our aim is to understand the importance of supervisory and monetary authorities to restore financial stability. The model is calibrated against real data and used for simulations. We show that liquidity injections reduce financial instability but have ambiguous effects on output fluctuations. The model also confirms the partial equilibrium literature results on the procyclicality of Basel II