Resumen de Collateralized Assets Prices and Monetary Policy
- español
A well-informed and cautious financial system can improve the welfare outcome of an economy by making lenders surplus to borrowers. Nevertheless, in a crisis, the behavior of the financial system can become an amplifier of it, given that credit approval conditions rarely meet the standards. Therefore, a credit crunch may occur even in a low-interest ra-tes environment. This paper illustrates the aforementioned point by developing a general equilibrium model where the collateral credit condition defines the prudential behavior of the financial system. It and other conditions amplify the magnitude of a negative pro-ductivity shock.
- português
Um sistema financeiro bem informado e cauteloso pode melhorar o bem-estar de uma economia ao canalizar os excedentes dos poupadores aos mutuários. No entanto, em uma situação de crise, o menor preço de bens hipotecáveis limita a capacidade de crédito da economia, gerando a possibilidade de uma redução no crédito inclusive em um cenário de baixas taxas de juros. Este documento ilustra o ponto anteriormente mencionado através de um modelo de equilíbrio geral no que o uso de ativos como colateral determina que tanto risco há no comportamento do sistema financeiro. Esta e várias outras condições amplificam a magnitude de um choque de produtividade negativo
- English
A well-informed and cautious financial system can improve the welfare outcome of an economy by making lenders surplus to borrowers. Nevertheless, in a crisis, the behavior of the financial system can become an amplifier of it, given that credit approval conditions rarely meet the standards. Therefore, a credit crunch may occur even in a low-interest ra-tes environment. This paper illustrates the aforementioned point by developing a general equilibrium model where the collateral credit condition defines the prudential behavior of the financial system. It and other conditions amplify the magnitude of a negative pro-ductivity shock
