SCHCLAREK CURUTCHET ALFREDO
Congresos y reuniones científicas
Título:
Investment, Lending and The Corridor Hypothesis
Autor/es:
ALFREDO SCHCLAREK; DANIEL HEYMANN
Lugar:
Buenos Aires
Reunión:
Otro; Taller de trabajo; 2010
Resumen:
This paper theoretically studies the interaction between the productive sector and the financial sector. In the model, the productive sector finances its activities through access to loans by the financial sector. When the economy is hit by a small liquidity shock, the financial sector helps the productive sector to cope with the shock and helps stabilizing the economy. In this interval, total credits granted by the financial sector are increasing in the liquidity needs of the productive sector. When the liquidity shock is large, the financial sector is not only unable to help the productive sector but is also an additional destabilizing factor due to the withdrawal of available liquid funds. In this interval, total credits granted by the financial sector are decreasing in the liquidity needs of the productive sector. There is a role for the government to stabilize the economy when the shock is large.