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Relative price changes and absolute banking disasters: The role of equilibrium asset price adjustments [An article from: Economic Modelling]
Book Details
Author(s)A. Kildegaard
PublisherElsevier
ISBN / ASINB000PDSVIU
ISBN-13978B000PDSVI2
MarketplaceFrance 🇫🇷
Description
This digital document is a journal article from Economic Modelling, published by Elsevier in 2007. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.
Description:
Collapsing asset values frequently coincide with wider solvency crises, leaving financial institutions in the position of seizing and liquidating collateral at precisely the moment when the market value is lowest. This paper develops a dynamic general equilibrium model to explore the steady state and dynamic consequences of real exchange rate shocks for equilibrium domestic sectoral asset values-and by extension for domestic banks. The model is applied retroactively to the Chilean financial collapse of 1983.
Description:
Collapsing asset values frequently coincide with wider solvency crises, leaving financial institutions in the position of seizing and liquidating collateral at precisely the moment when the market value is lowest. This paper develops a dynamic general equilibrium model to explore the steady state and dynamic consequences of real exchange rate shocks for equilibrium domestic sectoral asset values-and by extension for domestic banks. The model is applied retroactively to the Chilean financial collapse of 1983.
