TY  - UNPD
A1  - Verona, Fabio
A1  - Martins, Manuel M. F.
A1  - Drumond, Inês
T1  - (Un)anticipated monetary policy in a DSGE model with a shadow banking system : [Version 21 Juni 2012]
T2  - Working paper series / Institute for Monetary and Financial Stability ; 56
N2  - Motivated by the U.S. events of the 2000s, we address whether a too low for too long interest rate policy may generate a boom-bust cycle. We simulate anticipated and unanticipated monetary policies in state-of-the-art DSGE models and in a model with bond financing via a shadow banking system, in which the bond spread is calibrated for normal and optimistic times. Our results suggest that the U.S. boom-bust was caused by the combination of (i) too low for too long interest rates, (ii) excessive optimism and (iii) a failure of agents to anticipate the extent of the abnormally favorable conditions.
T3  - Working paper series / Institute for Monetary and Financial Stability - 56 
KW  - DSGE model
KW  - shadow banking system
KW  - too low for too long
KW  - boom-bust
Y1  - 2012
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/26869
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-268698
UR  - http://www.imfs-frankfurt.de/fileadmin/user_upload/pdf/WP_56.pdf
IS  - 21 Juni 2012
ER  -