RT Journal Article
T1 Banking in Computable General Equilibrium Economies
A1 Díaz-Giménez, Javier
A1 Prescott, Edward C.
A1 Álvarez, Fernando
A1 Fitzgerald, Terry
AB In this paper we develop a computable general equilibrium economy that models the banking sector explicitly. Banks intermediate between households and between the household sector and the government sector. Households borrow from banks to finance their purchases of houses and they lend to banks to save for retirement. Banks pool households' savings and they purchase interest-bearing government debt and non-interest-bearing reserves. We use this structure to answer two sets of questions: one normative in nature that evaluates the welfare costs of alternative monetary and tax policies, and one positive in nature that studies the real effects of following a procyclical interest-rate policy rule.
PB Elsevier
SN 0165-1889
YR 1992
FD 1992
LK https://hdl.handle.net/10016/4949
UL https://hdl.handle.net/10016/4949
LA eng
DS e-Archivo
RD 2 may. 2024