Optimal interest rate rules, asset prices, and credit frictions

DOI10.1016/j.jedc.2006.11.006zbMath1163.91499MaRDI QIDQ1027416

Ester Faia, Tommaso Monacelli

Publication date: 1 July 2009

Published in: Journal of Economic Dynamics \& Control (Search for Journal in Brave)

Full work available at URL: http://repec.org/sce2005/up.2110.1107765171.pdf

zbMATH Keywords

price stickiness; asset prices; credit frictions; optimal simple interest rate rules

Mathematics Subject Classification ID

91B64: Macroeconomic theory (monetary models, models of taxation)

Related Items

U.S. Business Cycles, Monetary Policy and the External Finance Premium, Optimal monetary policy rules with labor market frictions, Monetary policy and asset prices with belief-driven fluctuations, Leaning against boom-bust cycles in credit and housing prices, Patents as collateral, Do credit market imperfections justify a central bank's response to asset price fluctuations?, Optimal monetary policy with capital and a financial accelerator, Costly external finance and labor market dynamics, Optimal monetary policy rules, financial amplification, and uncertain business cycles, Credit constraints and the government spending multiplier, Capital flows, financial intermediation and macroprudential policies, Can we still lean against the wind? Asset price volatility and optimal policy mix in an overlapping generations model, The external finance premium and the macroeconomy: US post-WWII evidence

Cites Work

• Solving dynamic general equilibrium models using a second-order approximation to the policy function
• Optimal contracts and competitive markets with costly state verification
• Agency costs and business cycles
• Calculating and using second-order accurate solutions of discrete time dynamic equilibrium models
• Incentive-Compatible Debt Contracts: The One-Period Problem