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You are looking at 1 - 10 of 31 items for :

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Cover IMF Working Papers
Front Matter
Pietro Bomprezzi, Silvia Marchesi, and Ms. Rima A Turk
Keywords:
IMF; Firm investment; Local Projection; Financial Frictions; Difference-in-Differences; IMF arrangement; IMF working papers; firm investment response; AIPW estimate; program approval; Private investment; Financial statements; Balance of payments need; Sub-Saharan Africa
Cover IMF Working Papers
Front Matter
Sangyup Choi, Tim Willems, and Seung Yong Yoo
Keywords:
Monetary transmission mechanism; Credit; Financial frictions; Financial sector development; Exports
Cover IMF Research Bulletin
IMF Research Bulletin, December 2014
International Monetary Fund
The December 2015 IMF Research Bulletin features a sampling of key research from the IMF. The Research Summaries in this issue look at “The Impact of Deflation and Lowflation on Fiscal Aggregates (Nicolas End, Sampawende J.-A. Tapsoba, Gilbert Terrier, and Renaud Duplay); and “Oil Exporters at the Crossroads: It Is High Time to Diversify” (Reda Cherif and Fuad Hasanov). Mahvash Saeed Qureshi provides an overview of the fifth Lindau Meeting in Economics in “Meeting the Nobel Giants.” In the Q&A column on “Seven Questions on Financial Frictions and the Sources of the Business Cycle, Marzie Taheri Sanjani looks at the driving forces of the business cycle and macroeconomic models. The top-viewed articles in 2014 from the IMF Economic Review are highlighted, along with recent IMF Working Papers, Staff Discussion Notes, and IMF publications.
Keywords:
IRB; IMF Team; IMF research bulletin; emerging market volatility; monetary policy interaction; IMF department; IMF research; Deflation; Oil prices; Financial frictions; Oil; Income inequality; Global
Cover IMF Working Papers
Business Cycles in Emerging Markets: The Role of Durable Goods and Financial Frictions
International Monetary Fund
This paper examines how durable goods and financial frictions shape the business cycle of a small open economy subject to shocks to trend and transitory shocks. In the data, nondurable consumption is not as volatile as income for both developed and emerging market economies. The simulation of the model implies that shocks to trend play a less important role than previously documented. Financial frictions improve the ability of the model to match some key business cycle properties of emerging economies. A countercyclical borrowing premium interacts with the nature of durable goods delivering highly volatile consumption and very countercyclical net exports.
Keywords:
WP; consumer durables; trade balance; emerging markets; real business cycles; durables; financial frictions; durable goods; borrowing premium; consumption goods; consumption expenditure; utility share; open economy; Consumption; Emerging and frontier financial markets; Business cycles; Income
Cover IMF Working Papers
Macrofinancial Modeling At Central Banks: Recent Developments and Future Directions
Mr. Jan Vlcek and Mr. Scott Roger
This paper surveys dynamic stochastic general equilibrium models with financial frictions in use by central banks and discusses priorities for future development of such models for the purpose of monetary and financial stability analysis. It highlights the need to develop macrofinancial models which allow analysis of the macroeconomic effects of macroprudential policy tools and to evaluate elements of the Basel III reforms as a priority. The paper also reviews the main approaches to introducing financial frictions into general equilibrium models.
Keywords:
WP; bank; central bank; capital; interbank market; transmission mechanism; Monetary policy analysis; financial frictions; macroeconomic modeling; lending bank; bank capital channel; banking sector; representative bank; DSGE forecasting; Financial stability assessment; Dynamic stochastic general equilibrium models; Interbank markets
Cover IMF Working Papers
Balance-Sheet Shocks and Recapitalizations
Mr. Damiano Sandri and Mr. Fabian Valencia
We develop a dynamic stochastic general equilibrium model with financial frictions on both financial intermediaries and goods-producing firms. In this context, due to high leverage of financial intermediaries, balance sheet disruptions in the financial sector are particularly detrimental for aggregate output. We show that the welfare gains from recapitalizing the financial sector in response to large but rare net worth losses are as large as those from eliminating business cycle fluctuations. We also find that these gains are increasing in the size of the net worth loss, are larger when recapitalization funds are raised from the household rather than the real sector, and may increase with a reduction in financial intermediaries idiosyncratic risk.
Keywords:
WP; agency problem; business cycle; Financial accelerator; bank bailouts; leverage; balance-sheet shocks; recapitalization policy; welfare gain; recapitalization fund; recapitalization share; recapitalization process; gains from recapitalization; Financial sector; Financial frictions; Nonbank financial institutions; Self-employment; Global
Cover IMF Working Papers
Financial Frictions, Investment, and Institutions
Yishay Yafeh, Mr. Kenichi Ueda, and Mr. Stijn Claessens
Financial frictions have been identified as key factors affecting economic fluctuations and growth. But, can institutional reforms reduce financial frictions? Based on a canonical investment model, we consider two potential channels: (i) financial transaction costs at the firm level; and (ii) required return at the country level. We empirically investigate the effects of institutions on these financial frictions using a panel of 75,000 firm-years across 48 countries for the period 1990 - 2007. We find that improved corporate governance (e.g., less informational problems) and enhanced contractual enforcement reduce financial frictions, while stronger creditor rights (e.g., lower collateral constraints) are less important.
Keywords:
WP; external finance; rate of return; product market; Financial Friction; investment; institution; corporate governance; creditor rights; adjustment cost; required rate of return; inflation rate; investment decision; investment efficiency; cash flow; replacement cost; debt cost; investment adjustment cost; investment literature; costs of investment; Inv. Adj. cost; Financial frictions; Competition; Commodity markets; Stocks; Global