We develop a quantitative monetary DSGE model with financial intermediaries that face
endogenously determined balance sheet constraints. We then use the model to evaluate the …

We develop a canonical framework to think about credit market frictions and aggregate
economic activity in the context of the current crisis. We use the framework to address two …

This paper studies the welfare properties of competitive equilibria in an economy with
financial frictions hit by aggregate shocks. In particular, it shows that competitive financial …

The basic (representative-household) New Keynesian model of the monetary transmission
mechanism is extended to allow for a spread between the interest rate available to savers …

Optimizing banks subject to runs are introduced in a macro model to study the transmission
of monetary policy and its interplay with bank capital regulation when banks are risky. A …

This paper surveys the theoretical and empirical literature on the macroeconomic
implications of financial imperfections. It focuses on two major channels through which …

We estimate the interdependence between US monetary policy and the S&P 500 using
structural vector autoregressive (VAR) methodology. A solution is proposed to the …

This paper studies the potential gains of monetary and macro-prudential policies that lean
against house-price and credit cycles. We rely on a model that features Borrowers and …

We assess the effects of monetary policy on bank risk to verify the existence of a risk-taking
channel–monetary expansions inducing banks to assume more risk. We first present VAR …

In this paper, we analyze the interactions between monetary and macro-prudential policies
and the circumstances under which such interactions call for their coordinated …