Credit subsidies

Isabel Correia, Fiorella de Fiore, Pedro Teles*, Oreste Tristani

*Autor correspondente para este trabalho

Resultado de pesquisarevisão de pares

4 Citações (Scopus)

Resumo

Credit subsidies are an alternative to interest rate and credit policies when dealing with high and volatile credit spreads. In a model where credit spreads move in response to shocks to the net worth of financial intermediaries, credit subsidies are able to stabilize those spreads avoiding repercussions on the real economy. Interest rate policy can be a substitute for credit subsidies but it is limited by the zero bound constraint. Credit subsidies overcome this constraint. They are superior to a policy of credit easing as long as the government is less efficient than financial intermediaries in providing credit.
Idioma originalEnglish
Páginas (de-até)2-14
Número de páginas13
RevistaJournal of Monetary Economics
Volume118
DOIs
Estado da publicaçãoPublicado - mar. 2021

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