Banks in the Global Integrated Monetary and Fiscal Model

50 Pages Posted: 31 Aug 2015

See all articles by Michal Andrle

Michal Andrle

International Monetary Fund (IMF)

Michael Kumhof

CEPR

Douglas Laxton

International Monetary Fund (IMF) - Research Department

Dirk Muir

International Monetary Fund (IMF)

Date Written: July 2015

Abstract

The Global Integrated Monetary and Fiscal model (GIMF) is a multi-region DSGE model developed by the Economic Modeling Division of the IMF for policy and scenario analysis. This paper compares two versions of GIMF, GIMF with a conventional financial accelerator, where bank balance sheets do not play a prominent role, and GIMF with both a financial accelerator and a fully specified banking sector that can make lending losses, and that is regulated according to Basel-III. We illustrate the comparative macroeconomic properties of both models by presenting their responses to a wide range of fiscal, demand, supply and financial shocks.

Keywords: Multi-Region DSGE Models, Financial Accelerator, Macro-Financial Linkages, Macroprudential Policy

JEL Classification: E62, H21, H39, H63

Suggested Citation

Andrle, Michal and Kumhof, Michael and Laxton, Douglas and Muir, Dirk, Banks in the Global Integrated Monetary and Fiscal Model (July 2015). IMF Working Paper No. 15/150, Available at SSRN: https://ssrn.com/abstract=2653603

Michal Andrle (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Michael Kumhof

CEPR ( email )

London
United Kingdom

Douglas Laxton

International Monetary Fund (IMF) - Research Department ( email )

700 19th Street NW
Washington, DC 20431
United States

Dirk Muir

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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