Credit subsidies*

• 成果类型: Article
• 署名作者: Correia, Isabel; De Fiore, Fiorella; Teles, Pedro; Tristani, Oreste
• 署名单位: Banco de Portugal; Universidade Catolica Portuguesa; Centre for Economic Policy Research - UK; European Central Bank
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2018.12.002
• 发表日期: 2021
• 页码: 2-14
• 关键词: Credit subsidies; monetary policy; Zero lower bound on nominal interest rates; banks; Costly enforcement

摘要

Credit subsidies are an alternative to interest rate and credit policies when dealing with high and volatile credit spreads. In a model where credit spreads move in response to shocks to the net worth of financial intermediaries, credit subsidies are able to stabilize those spreads avoiding repercussions on the real economy. Interest rate policy can be a substitute for credit subsidies but it is limited by the zero bound constraint. Credit subsi-dies overcome this constraint. They are superior to a policy of credit easing as long as the government is less efficient than financial intermediaries in providing credit. (c) 2018 Elsevier B.V. All rights reserved.