Publication
22 Oct 2009
This paper studies 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. The authors argue that the best policy combination includes mildly anticyclical capital ratios and a response of monetary policy to asset prices or leverage.
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English (PDF, 46 pages, 865 KB) |
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Author | Ignazio Angeloni, Ester Faia |
Series | Kiel Institute Working Papers |
Issue | 1569 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2009 Kiel Institute for the World Economy |