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 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.

Grantor dc:publisher

Universidad del Rosario

Year dc:date

2012

Author dc:creator

• Arango Isaza, Mauricio

• Crisis financiera
• Sistema financiero::Modelos Econométricos
• Equilibrio (Economía)::Modelos Econométricos

Statement dc:rights

• info:eu-repo/semantics/openAccess

Licence

• http://creativecommons.org/licenses/by-nc-nd/2.5/co/

Language dc:language

spa

Identifier

http://repository.urosario.edu.co/handle/10336/4141

OAI identifier oai:identifier

oai:repository.urosario.edu.co:10336/4141