Liquidity Rules and Credit Booms
Publication in refereed journal

香港中文大學研究人員
替代計量分析
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其它資訊
摘要This paper shows that liquidity regulation can trigger unintended credit booms in the presence of interbank market power. We consider a price setter and a continuum of price takers who trade reserves after the realization of idiosyncratic liquidity shocks. The price takers are endogenously less liquid and circumvent regulation by engaging in shadow banking, which leads to a reallocation of funding away from the more liquid price setter. This reallocation channel underlies the credit boom. Endogenous responses in bank liquidity ratios also affect the magnitude of the boom. We discuss extensions of the model and illustrate its quantitative performance with an application to China.
著者Kinda Hachem, Zheng Song
期刊名稱Journal of Political Economy
出版年份2021
月份10
卷號129
期次10
頁次2721 - 2765
國際標準期刊號0022-3808
語言美式英語

上次更新時間 2021-28-11 於 00:24