Modelling the central bank repo rate in a dynamic general equilibrium framework

Detalhes bibliográficos
Autor(a) principal: Leão, E. R.
Data de Publicação: 2005
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10071/514
Resumo: The present paper adds a central bank to an existing general equilibrium model with banking sector. In our model, the central bank lends reserves to commercial banks and charges its repo interest rate. We obtain the usual result of flexible price models that expansionary monetary policy has a negligible effect on real variables such as output, consumption and investment expenditure. However, the composition of total investment is significantly altered as investment by banks increases at the expense of investment by nonbank firms. This result is a consequence of our explicit modelling of the central bank repo rate.
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spelling Modelling the central bank repo rate in a dynamic general equilibrium frameworkDynamic general equilibriumMonetary policyCentral bank repo rateComposition of investment expenditurePrice level determinancyThe present paper adds a central bank to an existing general equilibrium model with banking sector. In our model, the central bank lends reserves to commercial banks and charges its repo interest rate. We obtain the usual result of flexible price models that expansionary monetary policy has a negligible effect on real variables such as output, consumption and investment expenditure. However, the composition of total investment is significantly altered as investment by banks increases at the expense of investment by nonbank firms. This result is a consequence of our explicit modelling of the central bank repo rate.Dinâmia2007-07-19T09:15:51Z2005-01-01T00:00:00Z2005info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10071/514engLeão, E. R.info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-11-09T17:27:42Zoai:repositorio.iscte-iul.pt:10071/514Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T22:12:21.209081Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Modelling the central bank repo rate in a dynamic general equilibrium framework
title Modelling the central bank repo rate in a dynamic general equilibrium framework
spellingShingle Modelling the central bank repo rate in a dynamic general equilibrium framework
Leão, E. R.
Dynamic general equilibrium
Monetary policy
Central bank repo rate
Composition of investment expenditure
Price level determinancy
title_short Modelling the central bank repo rate in a dynamic general equilibrium framework
title_full Modelling the central bank repo rate in a dynamic general equilibrium framework
title_fullStr Modelling the central bank repo rate in a dynamic general equilibrium framework
title_full_unstemmed Modelling the central bank repo rate in a dynamic general equilibrium framework
title_sort Modelling the central bank repo rate in a dynamic general equilibrium framework
author Leão, E. R.
author_facet Leão, E. R.
author_role author
dc.contributor.author.fl_str_mv Leão, E. R.
dc.subject.por.fl_str_mv Dynamic general equilibrium
Monetary policy
Central bank repo rate
Composition of investment expenditure
Price level determinancy
topic Dynamic general equilibrium
Monetary policy
Central bank repo rate
Composition of investment expenditure
Price level determinancy
description The present paper adds a central bank to an existing general equilibrium model with banking sector. In our model, the central bank lends reserves to commercial banks and charges its repo interest rate. We obtain the usual result of flexible price models that expansionary monetary policy has a negligible effect on real variables such as output, consumption and investment expenditure. However, the composition of total investment is significantly altered as investment by banks increases at the expense of investment by nonbank firms. This result is a consequence of our explicit modelling of the central bank repo rate.
publishDate 2005
dc.date.none.fl_str_mv 2005-01-01T00:00:00Z
2005
2007-07-19T09:15:51Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10071/514
url http://hdl.handle.net/10071/514
dc.language.iso.fl_str_mv eng
language eng
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Dinâmia
publisher.none.fl_str_mv Dinâmia
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron:RCAAP
instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron_str RCAAP
institution RCAAP
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collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
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