Instituto Superior de Economia e Gestão (ISEG)
Eventos
ISEG 2S SEMINARS | Booms and Systemic Banking Crises
Em 27-06-2013 às 15:30 / Quelhas 6 | Floor 3 | Delta Room
Speaker
Frank Smets
ECB, KU Leuven
Presentation
Booms and Systemic Banking Crises
Jointly with:
DE Seminars
Abstract
The empirical literature on systemic banking crises (SBCs) has shown that SBCs are rare events that break out in the midst of credit intensive booms and bring about particularly deep and long{lasting recessions. We attempt to explain these henomena within a dynamic general equilibrium model featuring a non{trivial banking sector.
In the model, banks are heterogeneous with respect to their intermediation skills, which gives rise to an interbank market.
Moral hazard and asymmetric information on this market may generate sudden interbank market freezes, SBCs, credit crunches and, ultimately, severe recessions. Simulations of a calibrated version of the model indicate that typical SBCs break out in the midst of a credit boom generated by a sequence of positive supply shocks rather than being the outcome of a big negative wealth shock. We also show that the model can account for the relative severity of recessions with SBCs and their longer duration.
Complete calendar
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ORGANIZING TEAM
This seminars series is organized by
Margarida Abreu
(ECO),
Raquel M. Gaspar
(FIN/MG) and
Isabel Proença
(QM).
MEETING THE SPEAKER
All speakers are available to meet faculty at ISEG during the afternoon after the talk. Slots are limited. To book your time with the speaker, contact one of the coordination team members.
MAILING LIST
To join the ISEG 2S Seminar Mailing List and receive regular information contact
Filomena Ferreira
.
PARKING
If you come to the seminars at ISEG by car, please contact
Filomena Ferreira
to assure your entrance into the park.
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