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A Tale of Two Policies: Prudential Regulation and Monetary Policy with Fragile Banks

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  • Ignazio Angeloni

Abstract

In a paper co-written with Ester Faia of Geothe University Frankfurt, Visiting Fellow Ignazio Angeloni introduces banks into a standard DSGE model and uses this framework to study the role of banks in the transmission of shocks, the effects of monetary policy when banks are exposed to runs, and the interplay between monetary policy and Basel-like capital ratios.

Suggested Citation

  • Ignazio Angeloni, 2009. "A Tale of Two Policies: Prudential Regulation and Monetary Policy with Fragile Banks," Working Papers 345, Bruegel.
  • Handle: RePEc:bre:wpaper:345
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