Economic crisis and the financial system amplification effect
A well informed and cautious financial system can improves the welfare outcome of an economy by driving lenders surplus to borrow-ers. Nevertheless in a crisis situation the financial system cautious behavior can become a crisis amplifier given that the credit approval conditions are hardly meet, so...
| Author: | |
|---|---|
| Format: | master thesis |
| Status: | Versión aceptada para publicación |
| Publication Date: | 2012 |
| Country: | Colombia |
| Institution: | Universidad del Rosario |
| Repository: | Repositorio EdocUR - U. Rosario |
| Language: | Spanish |
| OAI Identifier: | oai:repository.urosario.edu.co:10336/4141 |
| Online Access: | https://doi.org/10.48713/10336_4141 http://repository.urosario.edu.co/handle/10336/4141 |
| Access Level: | Open access |
| Keyword: | Crisis financiera Sistema financiero::Modelos Econométricos Equilibrio (Economía)::Modelos Econométricos |
| Summary: | A well informed and cautious financial system can improves the welfare outcome of an economy by driving lenders surplus to borrow-ers. Nevertheless in a crisis situation the financial system cautious behavior can become a crisis amplifier given that the credit approval conditions are hardly meet, so there could be a credit crunch even in a low interest rates environment. This paper illustrates the previous by developing a general equilibrium model where the collateral credit condition defines the prudential behavior of the financial sys-tem. This and some other conditions amplify the magnitude of a negative productivity shock. |
|---|