Banks and macroeconomic disturbances under predetermined exchange rates

• 成果类型: Article; Proceedings Paper
• 署名作者: Edwards, S; Vegh, CA
• 署名单位: University of California System; University of California Los Angeles; University of California System; University of California Los Angeles; National Bureau of Economic Research
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/S0304-3932(97)00043-3
• 发表日期: 1997
• 页码: 239-278
• 关键词: banking system; Bank credit; predetermined exchange rates; reserve requirements

摘要

As the recent Mexican crisis vividly illustrates, Latin American countries often go through boom-bust cycles caused by both domestic policies and external shocks. Such cycles are typically magnified by weak banking systems which intermediate large capital inflows. This paper develops a simple optimizing model to analyze how the banking sector affects the propagation of shocks. In particular, we show how the world business cycle and shocks to the banking system affect output and employment through fluctuations in bank credit, We also analyze the countercyclical use of reserve requirements. Econometric evidence for Chile and Mexico supports the main predictions of the model.