Brown Bag Seminar: "The real effect of the latent (de)leverage pressure"

Speaker:  Tibor Pal
  Tuesday, June 7, 2022 at 12:00 PM In presenza + zoom. Link:

The 2007–2008 financial crisis and the subsequent prolonged recovery regained attention on the formerly underestimated role of financial factors. The present study outlines a methodology to quantify the behavioral factors behind credit frictions that affect the real economy through the bank lending channel. The central pillar of the study is a microanalysis including individual monetary financial institutions' balance sheet data in the Eurozone economy. The study employs an external instrument obtained by the fixed-effects regression model to identify a (de)leverage shock in a proxy SVAR model. Preliminary results suggest that the decreasing private sector's financial leverage driven by demand factors is relevant to the transmission mechanism in affecting the real economy.

Programme Director
Simone Quercia

Publication date
June 1, 2022