Three Essays on the Credit Dimension of Monetary Policy


Book Description

The model is general and appropriate to address several questions. We illustrate that by showing that it can replicate standard business cycle properties and to discuss conventional monetary policy in the context sudden stops, when the domestic banking system is often at the epicenter of the crisis. In Chapter 3, we first note that a number of recent theoretical papers show that margins can affect asset prices. Such results are important, for example, to understand the unconventional polices implemented by the Fed during the great recession of 2007-2010. However, empirical evidence is still scarce. We contribute to fill this gap. We show that an aggregate margin-related factor is able to predict future excess returns of the SP 500 and that stocks with high exposures to the cost of buying on margin pay on average higher returns.
















The Theory of Money and Financial Institutions


Book Description

This first volume in a three-volume exposition of Shubik's vision of "mathematical institutional economics" explores a one-period approach to economic exchange with money, debt, and bankruptcy. This is the first volume in a three-volume exposition of Martin Shubik's vision of "mathematical institutional economics"--a term he coined in 1959 to describe the theoretical underpinnings needed for the construction of an economic dynamics. The goal is to develop a process-oriented theory of money and financial institutions that reconciles micro- and macroeconomics, using as a prime tool the theory of games in strategic and extensive form. The approach involves a search for minimal financial institutions that appear as a logical, technological, and institutional necessity, as part of the "rules of the game." Money and financial institutions are assumed to be the basic elements of the network that transmits the sociopolitical imperatives to the economy. Volume 1 deals with a one-period approach to economic exchange with money, debt, and bankruptcy. Volume 2 explores the new economic features that arise when we consider multi-period finite and infinite horizon economies. Volume 3 will consider the specific role of financial institutions and government, and formulate the economic financial control problem linking micro- and macroeconomics.







Housing and Monetary Policy


Book Description

This thesis investigates heterogeneous topics since it is related to both housing economics and monetary economics, and uses various tools including theoretical modeling, microeconomic policy evaluation and macroeconomic empirical approach. It is constituted of three chapters. The first one, co-authored with Eric Monnet, is interested in the relationship between demographic changes within countries and housing investment. The second one, co-authored with Guillaume Chapelle and Benjamin Vignolles, assesses the impact of a housing tax credit on several dimensions of the housing market. Finally, the third one studies how monetary policy should react to capital inflows when there are frictions on the financial market.




Three Essays on Monetary Policy


Book Description

Englische Version: This thesis includes three chapters that inform the debate about central bank policies, especially with respect to trans-national dimensions. Thereby, the project aims at complementing the existing literature by fostering a better understanding of international monetary policy under the use of micro-economic data. The first chapter investigates how monetary policy conducted by the European Central Bank (ECB) affects the labor share at the firm-level, and suggests that the effectiveness of monetary policy may depend on the labor intensity of production. The results inform the policy debate on transmission and redistribution effects of monetary policy. The second chapter provides empirical evidence that euro-area wide monetary policy affects industrial competition in local markets. The findings suggest that tightening the policy stance is associated with a decline in competition (and vice versa), and this effect is sizeable and significant. This chapter highlights that low interest rates may support market competition and anti-monopolistic tendencies in an environment of bank-based lending. The third chapter sheds light on central bank cooperation in the shape of swap lines opened between the six major centrals banks (These are: The US Federal Reserve, ECB, Bank of England, Swiss National Bank, Bank of Canada, and the Bank of Japan.) during the Global Financial Crisis 2007/08. This facility ultimately developed into a permanent international lender of last resort facility, and acts a public liquidity backstop to Eurodollar markets. Building an interpretative framework of political economic analysis, we contrast rationalist approaches by showing that central bankers eventually institutionalize their crisis inventions. We answer the question of how the public backstop for the largest financial market - the eurodollar market - emerged in 2013.[...].