Banks in The Global Integrated Monetary and Fiscal Model

Michal Andrle, Michael Kumhof, Douglas Laxton and Dirk Muir

No 2015/150, IMF Working Papers from International Monetary Fund

Abstract: The Global Integrated Monetary and Fiscal model (GIMF) is a multi-region DSGE model developed by the Economic Modeling Division of the IMF for policy and scenario analysis. This paper compares two versions of GIMF, GIMF with a conventional financial accelerator, where bank balance sheets do not play a prominent role, and GIMF with both a financial accelerator and a fully specified banking sector that can make lending losses, and that is regulated according to Basel-III. We illustrate the comparative macroeconomic properties of both models by presenting their responses to a wide range of fiscal, demand, supply and financial shocks.

Keywords: WP; bank; bank equity; headline inflation; Multi-Region DSGE Models; Financial Accelerator; Macro-Financial Linkages; Macroprudential Policy; borrower riskiness; wholesale lending; loan loss; cost of capital; bank borrower; a lot of bank; Real interest rates; Consumption; Income; Bank credit; Loans; Global (search for similar items in EconPapers)
Pages: 49
Date: 2015-07-10
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Citations: View citations in EconPapers (8)

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