Author’s note: This blog is based on a published article: Bratsiotis, G.J. and Pathirage, K.D. (2026), ‘Monetary and Macroprudential Policy and Welfare in an Estimated Four-Agent New Keynesian Model’, Journal of Money, Credit and Banking, 58(5), pp. 1411-1452. https://doi.org/10.1111/jmcb.13095. The views expressed in this blog are those of the authors and do not necessarily represent […]
Tag Archives: monetary policy
02
Mar
Mar
In the wake of the Great Financial Crisis, the Basel Committee on Banking Supervision (BCBS) argued for counter-cyclical capital buffers and published operational guidelines (BCBS 2010) for regulators. The cornerstone of the BCBS proposal was the use of cyclical movements in the credit-to-GDP ratio gap to trigger increases in the capital required to be held […]
Macroeconomics and Monetary Policy
Unchartered Vulnerabilities: Corporate Leveraged Loans and Collateralised Loan Obligations
24
Feb
Feb
In the aftermath of the global financial crisis of 2008-09, accommodative monetary policy, mainly through unconventional means, provided liquidity support which eased financial conditions in the crisis-hit economies of the U.S. and Europe. But the low interest rate environment has encouraged greater risk-taking among corporates and non-bank financial institutions resulting in a build-up of corporate […]