Optimal Unconventional Monetary Policy in the Face of Shadow Banking

Using a DSGE framework, we discuss the optimal design of monetary policy for an economy where both retail banks and shadow banks serve as financial intermediaries. We get the following results. During crises times, a standard Taylor rule fails to reach sufficient stimulus. Direct asset purchases...

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Bibliographic Details

Published in:	MAGKS - Joint Discussion Paper Series in Economics (Band 25-2017)
Main Authors:	Kirchner, Philipp, Schwanebeck, Benjamin
Format:	Article
Language:	English
Published:	2017
Subjects:	shadow banking un- conventional policy financial frictions financial intermediation Wirtschaft optimal policy Economics
Online Access:	PDF Full Text
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