IDEAS home Printed from https://ideas.repec.org/a/cdh/commen/332.html
   My bibliography  Save this article

When Nightmares Become Real: Modelling Linkages between the Financial Sector and the Real Economy in the Aftermath of the Financial Crisis

Author

Listed:
  • Philippe Bergevin

    (C.D. Howe Institute)

  • Pierre Duguay

    (C.D. Howe Institute)

  • Paul Jenkins

    (C.D. Howe Institute)

Abstract

Our understanding of the links between the financial sector and the rest of the economy needs to improve concludes this report. The authors say that the complexity of these linkages have been neglected in the models typically used to guide monetary policy – the question is how to remedy deficiencies in policymakers’ economic models of the world, so that they can be used with confidence in guiding policy. The need to factor in a rich representation of the linkages between the financial sector and the real economy is also critically important to determining the extent to which monetary policy can, or should, be used to counteract the buildup of systemic risk in the financial system, the key issue from a policy framework perspective.

Suggested Citation

  • Philippe Bergevin & Pierre Duguay & Paul Jenkins, 2011. "When Nightmares Become Real: Modelling Linkages between the Financial Sector and the Real Economy in the Aftermath of the Financial Crisis," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 332, August.
    • Handle: RePEc:cdh:commen:332
    as

    Download full text from publisher

    File URL: https://www.cdhowe.org/public-policy-research/when-nightmares-become-real-modelling-linkages-between-financial-sector-and-real-economy-aftermath
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Beachy, Ben, 2012. "A Financial Crisis Manual Causes, Consequences, and Lessons of the Financial Crisis," Working Papers 179105, Tufts University, Global Development and Environment Institute.
    2. Ben Beachy, 2012. "A Financial Crisis Manual Causes, Consequences, and Lessons of the Financial Crisis," GDAE Working Papers 12-06, GDAE, Tufts University.
    3. Paul Jenkins, 2019. "Into the Unknown: Reflections on Risk, Uncertainty and Monetary Policy Decision-making," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 549, July.

    More about this item

    Keywords

    Monetary Policy; financial sector; financial linkages; inflation targeting; Bank of Canada; central banks;
    All these keywords.

    JEL classification:

    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cdh:commen:332. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kristine Gray (email available below). General contact details of provider: https://edirc.repec.org/data/cdhowca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.