central bank

Financial (In)stability, Supervision and Liquidity Injections: A Dynamic General Equilibrium Approach*

JEL codes: 
E13, E20, G21, G28
Version Date: 
Feb 2009

We develop a dynamic stochastic general equilibrium model with an heterogeneous banking sector. We introduce endogenous default probabilities for both firms and banks, and allow for bank regulation and liquidity injection into the interbank market.

Report file: 
PDF icon Download the paper (344.48 KB)