TY  - UNPD
A1  - Angeloni, Ignazio
A1  - Faia, Ester
A1  - Lo Duca, Marco
T1  - Monetary policy and risk taking : [draft december 2011]
T2  - Bruegel working paper ; 2010,00
N2  - We assess, through VAR evidence, the effects of monetary policy on banks’ risk exposure and find the presence of a risk-taking channel. A model combining fragile banks prone to risk mis-incentives and credit constrained firms, whose collateral fluctuations generate a balance sheet channel, is used to rationalize the evidence. A monetary expansion increases bank leverage. With two consequences: on the one side this exacerbates risk exposure; on the other, the risk spiral depresses output, therefore dampening the conventional amplification effect of the financial accelerator.
KW  - monetary policy
KW  - bank behavior
KW  - leverage
KW  - financial accelerator
Y1  - 2010
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/34321
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-343217
UR  - http://www.bruegel.org/publications/publication-detail/publication/380-monetary-policy-and-risk-taking/
IS  - This draft: December 2011
EP  - 45
CY  - Bruegel
ER  -