Credit Frictions and Consumption Dynamics in an Open Economy

Title	Credit Frictions and Consumption Dynamics in an Open Economy
Creator	朱琇妍 Chu, Shiou-Yen
Contributor	財政系
Key Words	Financial accelerator ; Interest rate rigidity ; Collateral constraint
Date	2013-06
Date Issued	4-Oct-2019 16:07:16 (UTC+8)
Summary	This paper incorporates a collateral constraint and a banking sector into the New Keynesian dynamic stochastic general equilibrium (DSGE) model. With the presence of credit frictions and interest rate rigidity, we examine the dynamics between housing prices, housing consumption and interest rates in response to policy shocks and exchange rate shocks. Unanticipated monetary contraction and currency depreciation decrease collateral-constrained households` housing consumption in accordance with lower home prices, less availability of domestic borrowing and lower lending rates. Compared to a closed economy, policy shocks have larger spillover effects on housing consumption in an open economy since the availability of foreign borrowing magnifies the impact of declining housing prices.
Relation	International Review of Economics and Finance, Vol.27, pp.250-260
Type	article

dc.contributor	財政系
dc.creator (作者)	朱琇妍
dc.creator (作者)	Chu, Shiou-Yen
dc.date (日期)	2013-06
dc.date.accessioned	4-Oct-2019 16:07:16 (UTC+8)	-
dc.date.available	4-Oct-2019 16:07:16 (UTC+8)	-
dc.date.issued (上傳時間)	4-Oct-2019 16:07:16 (UTC+8)	-
dc.identifier.uri (URI)	http://nccur.lib.nccu.edu.tw/handle/140.119/126713	-
dc.description.abstract (摘要)	This paper incorporates a collateral constraint and a banking sector into the New Keynesian dynamic stochastic general equilibrium (DSGE) model. With the presence of credit frictions and interest rate rigidity, we examine the dynamics between housing prices, housing consumption and interest rates in response to policy shocks and exchange rate shocks. Unanticipated monetary contraction and currency depreciation decrease collateral-constrained households` housing consumption in accordance with lower home prices, less availability of domestic borrowing and lower lending rates. Compared to a closed economy, policy shocks have larger spillover effects on housing consumption in an open economy since the availability of foreign borrowing magnifies the impact of declining housing prices.
dc.format.extent	480837 bytes	-
dc.format.mimetype	application/pdf	-
dc.relation (關聯)	International Review of Economics and Finance, Vol.27, pp.250-260
dc.subject (關鍵詞)	Financial accelerator ; Interest rate rigidity ; Collateral constraint
dc.title (題名)	Credit Frictions and Consumption Dynamics in an Open Economy
dc.type (資料類型)	article