Abstract
The macroeconomic effects of capital shortfalls in the financial intermediation sector are compared across five dynamic equilibrium models for policy analysis. Although all the models considered share antecedents and a methodological core, each model emphasizes different transmission channels. This approach delivers model-based confidence intervals for the real and financial effects of shocks originating in the financial sector. The width of 90 percent confidence interval for the GDP response to a banking-sector shock produced by a VAR is comparable to the range of outcomes featured in our model-comparison exercise
Authors
- Luca Guerrieri
- Matteo Iacoviello
- Francisco Covas
- John C. Driscoll
- Mohammad Jahan-Parvar
- Michael Kiley
- Albert Queralto
- Jae Sim
JEL codes
- E32
- E44
- E47