Economic crisis and the financial system amplification effect
type: CreativeWork
description: 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.
abstract: 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.
author: Arango Isaza, Mauricio
language: spa
keywords: Crisis financiera, Sistema financiero::Modelos Econométricos, Equilibrio (Economía)::Modelos Econométricos
license: http://creativecommons.org/licenses/by-nc-nd/2.5/co/
date published: 2012-11-22
date modified: 2026-07-27T20:46:13Z
provider: Universidad del Rosario
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: Universidad del Rosario

PropertyValue
property ID: DOI
value: 10.48713/10336_4141