Entrepreneurship, Monetary Policy and Financial Intermediation

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Project objective

Research objectives and contentThe purpose of this project is to discuss the implications for the effectiveness of monetary policy of alternative mechanisms of the monetary transmission. Two issues deserve to be studied: the role of banks in the process of monetary transmission, and how shocks in the credit market can create disruptions in economic activity.The model should encompass two characteristics:I) To model credit imperfections explicitly.II) To allow comparisons between two monetary policies: expansion of high power money and open market operations.A critical point of this project will be to determine the timing of policies. Our conjecture is that agents take decisions before both monetary and real (aggregate) shocks are realized, but after they observe the idiosynchratic shocks affecting themselves.Training content (objective, benefit and expected impact)The objective is to take on a project that will expand the knowledge and skills of the candidate on the area of the supervisor selected. There will also be a benefit for the Spanish university community, since the results of this training will be brought back to Spain and spread out through future research collaboration with other scientists. These two years will also help to strengthen the ties and encourage future collaboration between the LSE and those Spanish institutions with which the candidate will be related in the future.Links with industry / industrial relevance (22) NONE

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Participants

• LONDON SCHOOL OF ECONOMICS AND POLITICAL SCIENCE · LONDONCoordinatorUnited Kingdom

Links

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