Debt Market Imperfections and Macroeconomic Implications
Coordinator: Prof. Ester Faia, Ph.D., Prof. Dr. Jan Pieter Krahnen
We explore the role of bank debt for the propagation of risk in the economy and for the interaction with monetary and fiscal policy. We also consider the possible role of implicit government guarantee of the monetary policy when banks have an incentive to do risk taking (for instance in models of the interbank market). Some work will also assess the empirical relevance of the risk taking channel using time series evidence.
- Monetary Policy and Risk Taking
- Endogenous Banks' Networks, Cascades and Systemic Risk
- Monetary Policy Implementation in an Interbank Network: Effects on Systemic Risk
- Systemic Risk in an Interconnected Banking System with Endogenous Asset Markets