Intro -- Contents -- I. Introduction and Motivation -- II. The Model with Financial Intermediation and Frictions -- A. The Basic Structure of the Model -- B. Description of the Model's Micro Foundations -- C. Main Characteristics of Policy Transmission -- III. Model Calibration and Properties -- A. Parameterizing Steady State -- B. Parameterizing Transitory Dynamics and Stochastic Properties -- IV. Using the Model-Based Framework for Policy Analysis-Implications of a Credit Crunch -- A. Credit Crunch Induced by Exogenous Shocks -- B. Policy Induced Credit Crunch -- V. Conclusions and Policy Implications -- Reference -- Tables -- 1. List of Main Behavioral Parameters and Their Baseline Calibration -- 2. The Simulated Effects of the Exogenously Induced Credit Supply Shocks -- 3. The Simulated Effects of the Policy Shocks to Credit Supply: Priced-based Credit Measures -- 4. The Simulated Effects of the Individual Policy Shocks to Credit Supply: Credit Growth Controls -- Figures -- 1. Simulated Effects of the Exogenously Induced Credit Crunch Shock -- 2. Simulated Effects of the Price-Based Credit Measures -- 3. Simulated Effects of the Direct Credit Controls.

This paper develops a stylized, small, open economy macro model that incorporates an explicit and non-trivial role for financial intermediation. It illustrates how such a model could be used for policy analysis in an emerging market economy where policymakers are concerned about risks associated with rapid credit growth, financial dollarization, and foreign borrowing, while lacking traditional tools to effect monetary policy transmission, and hence could resort to more direct instruments, such as foreign exchange market intervention and regulatory and administrative measures. Calibrating the model to a stylized emerging European economy, the paper simulates real and financial sector implications of various external and policy-related shocks that could be used as input for monetary policy making.

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Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2018. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.