EAGLE-FLI. A macroeconomic model of banking and financial interdependence in the euro area

Pascal Jacquinot, Massimiliano Pisani, Sandra Gomes, Nikola Bokan and Andrea Gerali ()

No 1923, Working Paper Series from European Central Bank

Abstract: We incorporate financial linkages in EAGLE, a New Keynesian multi-country dynamic general equilibrium model of the euro area (EA) by including financial frictions and country-specific banking sectors. In this new version of the model, termed EAGLE-FLI (Euro Area and GLobal Economy with Financial LInkages), banks collect deposits from domestic households and cross- country interbank market and raise capital to finance loans issued to domestic households and firms. In order to borrow from local (regional) banks, households use domestic real estate as collateral whereas firms use both domestic real estate and physical capital. These features JEL Classification: E51, E32, E44, F45, F47

Keywords: banks; DSGE models; econometric models; financial frictions; open-economy macroeconomics; policy analysis (search for similar items in EconPapers)
Date: 2016-06
New Economics Papers: this item is included in nep-dge, nep-eec, nep-ger, nep-mac, nep-mon and nep-opm
Note: 725400
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Related works:
Journal Article: EAGLE-FLI: A macroeconomic model of banking and financial interdependence in the euro area (2018)
Working Paper: EAGLE-FLI. A macroeconomic model of banking and financial interdependence in the euro area (2016)
Working Paper: EAGLE-FLI: A macroeconomic model of banking and financial interdependence in the euro area (2016)
Working Paper: EAGLE-FLI - A macroeconomic model of banking and financial interdependence in the euro area (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:20161923

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