Financial Shocks, Financial Frictions and Financial Intermediaries in DSGE Models: Comments on the Recent Literature
AbstractThe aim of this work is to compare and contrast different ways of modeling financial shocks and financial intermediaries in the Dynamic Stochastic General Equilibrium models (DSGE models) and to discuss the empirical evidence on the importance of modeling financial sector and financial shocks in the economy. The analysis is based on four papers on the matter Jerman and Quiadrini (2009),Christiano, Motto and Rostagno (2006), Goodfriend and McCallum (2007), and Gertler and Kiyotaki (2009)
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 22957.
Date of creation: 27 May 2010
Date of revision:
Financial frictions; Financial Intermediaries; Financial shocks; DSGE models.;
Find related papers by JEL classification:
- E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
- E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
- E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
- E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-06-04 (All new papers)
- NEP-CBA-2010-06-04 (Central Banking)
- NEP-DGE-2010-06-04 (Dynamic General Equilibrium)
- NEP-MAC-2010-06-04 (Macroeconomics)
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