Policy uncertainty, lender of last resort and the real economy

• 成果类型: Article
• 署名作者: Jasova, Martina; Mendicino, Caterina; Supera, Dominik
• 署名单位: Columbia University; Charles University Prague; European Central Bank; University of Pennsylvania
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2020.12.001
• 发表日期: 2021
• 页码: 381-398
• 关键词: Bank credit; Central bank commitment; Real effects

摘要

A reduction in lender of last resort (LOLR) policy uncertainty positively affects bank lending and propagates to investment and employment. We exploit a unique policy that reduced uncertainty regarding the availability of future LOLR funding for banks as a quasi natural experiment. Using micro-level data on banks, firms and loans in Portugal, we generate cross-sectional variation in banks? exposure to uncertainty and find that the size of the haircut subsidy the gap between private market and central bank security valuations plays a key role in the propagation of the shock to lending and the real economy. ? 2020 Elsevier B.V. All rights reserved.