Modelling the central bank repo rate in a dynamic general equilibrium framework
The present paper adds a central bank to an existing general equilibrium model with banking sector. In our model, the central bank lends reserves to commercial banks and charges its repo interest rate. We obtain the usual result of flexible price models that expansionary monetary policy has a neglig...
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| Format: | workingPaper |
| Language: | eng |
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2007
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| Online Access: | http://hdl.handle.net/10071/514 |
| Country: | Portugal |
| Oai: | oai:repositorio.iscte-iul.pt:10071/514 |