{"id":874,"date":"2021-05-21T16:22:48","date_gmt":"2021-05-21T07:22:48","guid":{"rendered":"https:\/\/lynx.let.hokudai.ac.jp\/cerss_tmp\/?p=874"},"modified":"2024-02-29T21:30:12","modified_gmt":"2024-02-29T12:30:12","slug":"bank-risk-monetary-transmission-and-macroprudential-policy","status":"publish","type":"post","link":"https:\/\/lynx.let.hokudai.ac.jp\/cerss\/en\/2021\/05\/21\/bank-risk-monetary-transmission-and-macroprudential-policy\/","title":{"rendered":"Bank Risk, Monetary Transmission, and Macroprudential Policy"},"content":{"rendered":"\n<p>Date &amp; Time: 2021. 5. 20 (Thu) 13:00-14:30<\/p>\n\n\n\n<p>Location: Online Meeting (Zoom)<\/p>\n\n\n\n<p>Speaker: IGARASHI Yoske&nbsp; (Hokkaido University, Faculty of Economics and Business, Associate Prof. )<\/p>\n\n\n\n<p>Participants: 14<\/p>\n\n\n\n<p>Title: Bank Risk, Monetary Transmission, and Macroprudential Policy<\/p>\n\n\n\n<p>Abstract\uff1a<br>This paper investigates the influence of bank default and leverage<br>constraints in monetary and macroprudential policy prescriptions. For<br>that purpose, we build a New Keynesian model with banks who channel<br>funds from households to firms. They face endogenous leverage<br>constraints \u00e0 la Gertler and Kiyotaki (2010) and are subject to the<br>possibility of costly default.<br>We calibrate our model to the US economy and show that in the<br>decentralized equilibrium banks borrow more than the socially efficient<br>level. A macroprudential policy which limits bank leverage reduces the<br>risk of bank default and improves long-run welfare. In the short run,<br>&#8220;macroprudential-flavored&#8221; monetary policy can reduce financial<br>propagation by financial frictions by affecting bank shadow values while<br>countercyclical capital requirement is effective in stabilizing asset<br>prices. Our normative analysis shows that introducing countercyclicality<br>in bank capital requirement achieves only moderate welfare improvement<br>when monetary policy has been used to mitigate financial acceleration.<br>The jointly optimal policies suggest that policymakers should assign<br>countercyclical macroprudential role to monetary policy, and bank<br>capital requirement should focus on the level of prudence.<\/p>\n\n\n\n<p><img decoding=\"async\" src=\"https:\/\/lynx.let.hokudai.ac.jp\/cerss\/assets\/upload\/images\/567-319-max%20%281%29%281%29.png\" alt=\"\" style=\"width: 300px;\"><\/p>\n\n\n\n<p>Susumu Ohnuma, Director, Center for Experimental Research in Social Sciences<br>e-mail: ohnuma@lynx.let.hokudai.ac.jp<\/p>\n","protected":false},"excerpt":{"rendered":"Date &amp; Time: 2021. 5. 20 (Thu) 13:00-14:30 Location: Online Meeting (Zoom) Speaker: IGARASHI Yos...","protected":false},"author":1,"featured_media":1493,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[109],"tags":[86],"class_list":["post-874","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-2021-en","tag-cerss-colloquium-en"],"_links":{"self":[{"href":"https:\/\/lynx.let.hokudai.ac.jp\/cerss\/wp-json\/wp\/v2\/posts\/874","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lynx.let.hokudai.ac.jp\/cerss\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lynx.let.hokudai.ac.jp\/cerss\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lynx.let.hokudai.ac.jp\/cerss\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lynx.let.hokudai.ac.jp\/cerss\/wp-json\/wp\/v2\/comments?post=874"}],"version-history":[{"count":2,"href":"https:\/\/lynx.let.hokudai.ac.jp\/cerss\/wp-json\/wp\/v2\/posts\/874\/revisions"}],"predecessor-version":[{"id":876,"href":"https:\/\/lynx.let.hokudai.ac.jp\/cerss\/wp-json\/wp\/v2\/posts\/874\/revisions\/876"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lynx.let.hokudai.ac.jp\/cerss\/wp-json\/wp\/v2\/media\/1493"}],"wp:attachment":[{"href":"https:\/\/lynx.let.hokudai.ac.jp\/cerss\/wp-json\/wp\/v2\/media?parent=874"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lynx.let.hokudai.ac.jp\/cerss\/wp-json\/wp\/v2\/categories?post=874"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lynx.let.hokudai.ac.jp\/cerss\/wp-json\/wp\/v2\/tags?post=874"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}