Credit crunch in a small open economy

Brzoza‐Brzezina, Michał; Makarski, Krzysztof

doi:10.1016/j.jimonfin.2011.07.010

Cited by 35 publications

(18 citation statements)

References 15 publications

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“…This resulted in a surge of interest in theoretical frameworks incorporating financial frictions. Models with imperfect financial markets were used to study important topical issues, like (i) the impact of financial frictions on monetary transmission (Calza et al, 2012;Gerali et al, 2010;Christiano et al, 2010), (ii) optimal monetary policy in the presence of financial frictions (Cú rdia and Woodford, 2009;De Fiore and Tristani, 2009;Carlstrom et al, 2010;Kolasa and Lombardo, 2011), (iii) the impact of financial shocks on the economy (Christiano et al, 2003;Iacoviello and Neri, 2010;Brzoza-Brzezina and Makarski, 2011) or (iv) capital regulations and macroprudential policies (Angelini et al, 2010;Angeloni and Faia, 2009;Meh and Moran, 2010;Jeanne and Korinek, 2010). Finally, it should be mentioned that financial frictions have recently been added to models used for policy purposes at several central banks.…”

Section: Introductionmentioning

confidence: 99%

The anatomy of standard DSGE models with financial frictions

Brzoza‐Brzezina

Kolasa

Makarski

2013

Journal of Economic Dynamics and Control

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a b s t r a c tWe compare two standard extensions to the New Keynesian framework that feature financial frictions. The first model, originating from Kiyotaki and Moore (1997), is based on collateral constraints. The second, developed by Carlstrom and Fuerst (1997) and Bernanke et al. (1999), accentuates the role of external finance premia. We tweak the models and calibrate them in a way that allows for both qualitative and quantitative comparisons. Next, we thoroughly analyze the two variants using moment matching, impulse response analysis and business cycle accounting. Overall, we find that the business cycle properties of the external finance premium framework are more in line with empirical evidence. In particular, the collateral constraint model fails to produce hump-shaped impulse responses and generates volatilities of the price of capital and rate of return on capital that are inconsistent with the data by a large margin.

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Section: Introductionmentioning

confidence: 99%

The anatomy of standard DSGE models with financial frictions

Brzoza‐Brzezina

Kolasa

Makarski

2013

Journal of Economic Dynamics and Control

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“…An economic approach to the credit crunch is taken by Agur [18] and Brzosa-Brezezina and Makarski [19].…”

Section: Review Of Literaturementioning

confidence: 99%

Credit Crunch in Europe: Comparing Austria, Italy and Greece

Catelani¹

2015

aeb

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Since the debt crises of some European countries in 2011, the European Central Bank and some credit and financial authorities have often spoken about a credit crunch in Europe. They have said that banks have curbed credit access to the economic system, creating persistent problems for the European economy. The aim of this paper is to analyze the problem of the credit crunch in Europe from 2007 to 2014, taking as our sample three European countries: Austria, Italy and Greece. These are countries with different economic structures, so they represent a significant sample for our purposes. Using statistical analysis, we will measure the entity of the credit crunch. We will find that the credit crunch is indeed present in Europe, but maybe is not as dramatic as has been described.

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“…More recently, effects of global financial crisis had adverse effects on the ability of entire economies to retain the desired level of financing. Indeed, effects of credit crunch and sudden stop are widely discussed in the literature [9,10,36]. These effects led to different responses of the monetary policy measures across the post-transition countries, as illustrated by [32].…”

Section: Introductionmentioning

confidence: 99%

Access To Finance – Innovation Relationship In Post-Transition

Botrić¹,

Božić²

2017

KSS

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Innovation performance of most post-transition countries lags behind average EU performance. Inadequately developed financial sector that does not provide suitable financing to innovative firms can be damaging to the overall innovation activity in transition countries. The main focus of this paper is related to the predictors of access to finance difficulties in the aftermath of the economic crisis in post-transition countries. The empirical analysis is based on the Business Environment and Enterprise Performance Survey (BEEPS V) data for 30 post-transition countries. We estimate probability of considering access to finance as a business obstacle corrected for the decision to apply for financing employing Heckman selection estimation procedure.

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Credit crunch in a small open economy

Cited by 35 publications

References 15 publications

The anatomy of standard DSGE models with financial frictions

The anatomy of standard DSGE models with financial frictions

Credit Crunch in Europe: Comparing Austria, Italy and Greece

Access To Finance – Innovation Relationship In Post-Transition

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