Macroeconomic Implications of Financial Imperfections : A Survey
This paper surveys the theoretical and empirical literature on the macroeconomic implications of financial imperfections. It focuses on two major channels through which financial imperfections can affect macroeconomic outcomes. The first channel, w...
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World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/336871511879910570/Macroeconomic-implications-of-financial-imperfections-a-survey http://hdl.handle.net/10986/28921 |
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okr-10986-289212021-06-08T14:42:47Z Macroeconomic Implications of Financial Imperfections : A Survey Claessens, Stijn Kose, M. Ayhan ASSET PRICES BALANCE SHEETS CREDIT FINANCIAL INTERMEDIATION FINANCIAL LINKAGES LIQUIDITY OUTPUT FINANCIAL ACCELERATOR ECONOMIC SHOCKS This paper surveys the theoretical and empirical literature on the macroeconomic implications of financial imperfections. It focuses on two major channels through which financial imperfections can affect macroeconomic outcomes. The first channel, which operates through the demand side of finance and is captured by financial accelerator-type mechanisms, describes how changes in borrowers' balance sheets can affect their access to finance and thereby amplify and propagate economic and financial shocks. The second channel, which is associated with the supply side of finance, emphasises the implications of changes in financial intermediaries' balance sheets for the supply of credit, liquidity and asset prices, and, consequently, for macroeconomic outcomes. These channels have been shown to be important in explaining the linkages between the real economy and the financial sector. That said, many questions remain. 2017-12-01T18:13:01Z 2017-12-01T18:13:01Z 2017-11 Working Paper http://documents.worldbank.org/curated/en/336871511879910570/Macroeconomic-implications-of-financial-imperfections-a-survey http://hdl.handle.net/10986/28921 English Policy Research Working Paper;No. 8260 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ASSET PRICES BALANCE SHEETS CREDIT FINANCIAL INTERMEDIATION FINANCIAL LINKAGES LIQUIDITY OUTPUT FINANCIAL ACCELERATOR ECONOMIC SHOCKS |
| spellingShingle |
ASSET PRICES BALANCE SHEETS CREDIT FINANCIAL INTERMEDIATION FINANCIAL LINKAGES LIQUIDITY OUTPUT FINANCIAL ACCELERATOR ECONOMIC SHOCKS Claessens, Stijn Kose, M. Ayhan Macroeconomic Implications of Financial Imperfections : A Survey |
| relation |
Policy Research Working Paper;No. 8260 |
| description |
This paper surveys the theoretical and
empirical literature on the macroeconomic implications of
financial imperfections. It focuses on two major channels
through which financial imperfections can affect
macroeconomic outcomes. The first channel, which operates
through the demand side of finance and is captured by
financial accelerator-type mechanisms, describes how changes
in borrowers' balance sheets can affect their access to
finance and thereby amplify and propagate economic and
financial shocks. The second channel, which is associated
with the supply side of finance, emphasises the implications
of changes in financial intermediaries' balance sheets
for the supply of credit, liquidity and asset prices, and,
consequently, for macroeconomic outcomes. These channels
have been shown to be important in explaining the linkages
between the real economy and the financial sector. That
said, many questions remain. |
| format |
Working Paper |
| author |
Claessens, Stijn Kose, M. Ayhan |
| author_facet |
Claessens, Stijn Kose, M. Ayhan |
| author_sort |
Claessens, Stijn |
| title |
Macroeconomic Implications of Financial Imperfections : A Survey |
| title_short |
Macroeconomic Implications of Financial Imperfections : A Survey |
| title_full |
Macroeconomic Implications of Financial Imperfections : A Survey |
| title_fullStr |
Macroeconomic Implications of Financial Imperfections : A Survey |
| title_full_unstemmed |
Macroeconomic Implications of Financial Imperfections : A Survey |
| title_sort |
macroeconomic implications of financial imperfections : a survey |
| publisher |
World Bank, Washington, DC |
| publishDate |
2017 |
| url |
http://documents.worldbank.org/curated/en/336871511879910570/Macroeconomic-implications-of-financial-imperfections-a-survey http://hdl.handle.net/10986/28921 |
| _version_ |
1764468036429938688 |