Research Seminar of International Laboratory for Macroeconomic Analysis: Aleksandr Shirobokov «Consumer credit, Financial Instability and Macroprudential Policy in a Small Open Economy»

Dear Colleagues,

International Laboratory for Macroeconomic Analysis invite everyone to join our research seminar on the 4th of  March 2021 (Thursday) at 04:00 PM (Moscow).

Speaker: Aleksandr Shirobokov

Theme: «Consumer credit, Financial Instability and Macroprudential Policy in a Small Open Economy»

Abstract:

We estimate using Russian data a small open economy New Keynesian DSGE model with a banking system, heterogeneous households and firms. Saver households deposit funds at the banks who lend to borrower households and firms. The latter two can borrow secured and unsecured debt from the banks. Unsecured debt is defaulted upon by borrowers who face a cost when they do so. We show that macroprudential policy tools that aim to minimise fluctuations in consumer credit, do so at the expense of corporate loans. Reducing both results in a cost to real variables or inflation. Optimal policy requires a combination of policy rules targeted to asset classes of interest in addition to rules targeting generalized systemic risk.

Working language: English

Looking forward to see you.

Link: https://zoom.us/j/8915494425

ID: 891 549 4425