Event overview
The seminar will present an agent-based model to analyze the policy mix between macro-prudential regulations and monetary policy with and without an interbank market.
We aim at spelling out the optimal policy combination to achieve the resilience of the financial sector and promote macroeconomic stability. The model endogenously generates interbank market freeze dynamics and features of systemically important financial institutions (SIFIs). Our simulation results show that interest rate corridor width has a potential to be considered a macro-prudential tool due to its capacity to restrain the volatility of interbank interest rate. Moreover, considering the combined and single e ffects of regulatory tools we find that LCR is not an adequate instrument to curb liquidity issues due to its procyclical nature.
Lilit Popoyan is a postdoctoral research fellow at the Institute of Economics, Scuola Superiore Sant’Anna (Italy) and a visiting scholar at the Institute of Management Studies, Goldsmiths.
Dates & times
| Date | Time | Add to calendar |
|---|---|---|
| 31 Oct 2018 | 5:00pm - 6:30pm |
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