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The Macroeconomic Consequences of Capital Constraints

Author

Listed:
  • Daniele Caratelli
  • Jacob Lockwood
  • Robert Mann
  • Kevin Zhao

Abstract

Countercyclical capital constraints allow banks to provide additional credit to consumers during recessions, smoothing consumption volatility (Working Paper no. 26-01).

Suggested Citation

  • Daniele Caratelli & Jacob Lockwood & Robert Mann & Kevin Zhao, 2026. "The Macroeconomic Consequences of Capital Constraints," Working Papers 26-01, Office of Financial Research, US Department of the Treasury.
    • Handle: RePEc:ofr:wpaper:26-01
    as

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    File URL: https://www.financialresearch.gov/working-papers/files/OFRwp26-01_macroeconomic-consequences-capital-constraints.pdf
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    References listed on IDEAS

    as
    1. Atif Mian & Amir Sufi & Emil Verner, 2020. "How Does Credit Supply Expansion Affect the Real Economy? The Productive Capacity and Household Demand Channels," Journal of Finance, American Finance Association, vol. 75(2), pages 949-994, April.
    2. Jordan Barone & Alain P. Chaboud & Adam Copeland & Cullen Kavoussi & Frank M. Keane & Seth Searls, 2023. "The Global Dash for Cash: Why Sovereign Bond Market Functioning Varied across Jurisdictions in March 2020," Economic Policy Review, Federal Reserve Bank of New York, vol. 29(3), pages 1-29, December.
    3. Matteo Benetton, 2021. "Leverage Regulation and Market Structure: A Structural Model of the U.K. Mortgage Market," Journal of Finance, American Finance Association, vol. 76(6), pages 2997-3053, December.
    Full references (including those not matched with items on IDEAS)

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