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Banks Respond to Monetary Policy Shocks Based on DSGE Model
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Nader Mehregan *   , Hasan Daliri |
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Abstract: (9424 Views) |
| The role of financial intermediaries in the monetary transmission mechanism has been largely neglected in the study of macroeconomic fluctuations. Until recently, most dynamic stochastic general equilibrium models (DSGE) that were used to conduct monetary policy analyses incorporated a frictionless financial sector. In this study, we investigated that how banks will react if monetary shock occurs in the economy. To do so we used DSGE model and Bayesian Estimate. The results show that the monetary shocks Increase demand for loans and reduce the amount of deposits. |
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| Keywords: Monetary Policy, Banking Industry, DSGE Model |
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Full-Text [PDF 558 kb]
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Type of Study: Research |
Subject:
Special
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