IRMA-International.org: Creator of Knowledge
Information Resources Management Association
Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

Credit-Market Imperfection and Monetary Policy Within DSGE Models

Credit-Market Imperfection and Monetary Policy Within DSGE Models
View Sample PDF
Author(s): Salha Ben Salem (University of Monastir, Tunisia), Nadia Mansour (University of Sousse, Tunisia & University of Salamanca, Spain)and Moez Labidi (University of Monastir, Tunisia)
Copyright: 2023
Pages: 22
Source title: Research Anthology on Macroeconomics and the Achievement of Global Stability
Source Author(s)/Editor(s): Information Resources Management Association (USA)
DOI: 10.4018/978-1-6684-7460-0.ch021

Purchase

View Credit-Market Imperfection and Monetary Policy Within DSGE Models on the publisher's website for pricing and purchasing information.

Abstract

This survey presented the various ways that are utilized in the literature to include financial market frictions in dynamic stochastic general equilibrium (DSGE) models. It focuses on the fundamental issue: to what extent the Taylor rules are optimal when the central bank introduces the goal of financial stability. Indeed, the latest financial crisis shows that the vulnerability of the credit cycle is considered the main source for the amplification of a small transitory shock. This conclusion changed the instrument that drives the transmission of monetary policy through the economy and pushed the policymakers to include financial stability as a second objective of the central bank.

Related Content

Iris-Panagiota Efthymiou, Symeon Sidiropoulos. © 2024. 24 pages.
Nitish Kumar Minz, Anshul Saluja. © 2024. 29 pages.
Iris-Panagiota Efthymiou. © 2024. 24 pages.
Antoine Toni Trad. © 2024. 43 pages.
Martha Ann Davis McGaw. © 2024. 15 pages.
Agyabeng Nimfah Yeboah, Leila Goosen. © 2024. 24 pages.
Surjit Singha. © 2024. 23 pages.
Body Bottom