Optimal interest rate rules, asset prices, and credit frictions

By Ester Faia, Tommaso Monacelli. 2005

366 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/7b019515bde1108d06a675bc4684c5431ba951d7

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In Economics and Econometrics

Citations in the corpus

Time-varying monetary-policy rules and financial stress: Does financial instability matter for monetary policy? (2011, background): “Faia and Monacelli (2007) extend the model developed by Bernanke and Gertler (2001) by a robust welfare metric confirming that strict inflation stabilization offers the best solution.”
A model of unconventional monetary policy (2011, neutral): “vt = Etf(1 ) t;t+1(Rkt+1 Rt+1) + t;t+1 xt;t+1vt+1g (11) t = Etf(1 ) + t;t+1 zt;t+1 t+1g”
Bank Leverage Regulation and Macroeconomic Dynamics (2011, neutral): “…and bankers are risk neutral the alternative rule specifications we consider have no impact on these agents’ average levels of consumption and thus the welfare rankings we obtain are robust to including the utility of entrepreneur and bankers in the welfare computations (Faia and Monacelli, 2007).”
Macroprudential Rules and Monetary Policy when Financial Frictions Matter (2015, positive): “In their study of optimal Taylor-type interest rate rules, Faia and Monacelli (2007) ﬁ nd that monetary policy should respond to increases in asset prices.”
Inefficient Credit Booms (2007, background): “As a final observation, notice that constraint (19), with Ū = UCE, ensures that consumers are as well off at a constrained efficient allocation as at the competitive allocation.”
A Tale of Two Policies- Prudential Regulation and Monetary Policy with Fragile Banks (2009, background): “See ofr instance Kim and Kim 2003, Kollmann [24], [25] Schmitt-Grohe and Uribe [30], [31], [32], Faia and Monacelli [17], Faia [16].”
Monetary policy and risk taking (2015, background): “The remaining part of the project is financed through corporate debt sold to households, at a cost equal to the deposits rate  Working out the analytics as in Faia and Monacelli [25], one obtains an expression for the premium on external finance, (+1), as follows”
The Interaction of Monetary and Macroprudential Policies (2016, neutral): “Examples of such studies include Iacoviello (2005), Monacelli (2006), Faia and Monacelli (2007), and Adrian and Shin (2010).”
Using monetary policy to stabilize economic activity (2009, methodology): “For example, in work by Faia and Monacelli 2007, variants of simply Taylor rules that allow for a reaction to the price of capital (the asset price in their model) are analyzed.”
Capital regulation and monetary policy with fragile banks (2013, background): “The first group is a See for instance Kim and Kim [40], Schmitt-Grohe and Uribe [52], [53], [54], Faia and Monacelli [32], Faia [29], Faia [30].”
Financial shocks and the US business cycle (2009, background): “Certainly some researchers (Gilchrist and Leahy, 2002, Faia and Monacelli, 2007 and Christiano, Motto and Rostagno, 2007) would basically argue that for all practical purposes monetary policy can generally do little better than stabilize in ation quite robustly.”
The External Finance Premium and the Macroeconomy: Us Post-Wwii Evidence (2008, positive): “Related, Faia and Monacelli (2007) and Meeks (2007) have introduced additional stochastics within the framework of Carlstrom and Fuerst (1997) that alter the cyclical behaviour of the premium.”