Financial disruption and state dependent credit policy

摘要

This paper analyzes unconventional monetary policy decisions related to transitory episodes of financial intermediation disruption. We consider unconventional monetary policy decisions as temporary policies aimed at dampening the consequences of financial and real shocks on the provision of loans. In a DSGE model with financial frictions, we provide a simple approach to the decision to begin and end up unconventional policy measures, by specializing this kind of policies to periods with loan supply shortages. Accounting for an endogenous length of loan supply shortages we find that this policies have two main effects. As previously found in the literature, by raising the value of the lending accelerator in a situation of loan scarcity, they dampen the consequences of shocks. As a second effect (new in the literature), such policy measures increase the length of the loan saturation period making the combination of conventional and unconvential policies an enduring policy solution. These results extend to the Zero Lower Bound situation.