Download This PaperCredit Subsidies
48 Pages Posted: 18 Jan 2016
Date Written: January 18, 2016
Abstract
In a model with costly financial intermediation and financial disturbances, credit subsidies are desirable, irrespective of how they are financed. They are especially useful when the zero lower bound constraint is reached. They are superior to other credit policies such as direct lending.
Keywords: credit policy, credit subsidies, monetary policy, zero-lower bound on nominal interest rates, banks, costly enforcement
JEL Classification: E31, E40, E44, E52, E58, E62, E63
Suggested Citation: Suggested Citation
Horta Correia, Isabel and De Fiore, Fiorella and Teles, Pedro and Tristani, Oreste, Credit Subsidies (January 18, 2016). ECB Working Paper No. 1877, Available at SSRN: https://ssrn.com/abstract=2717349 or http://dx.doi.org/10.2139/ssrn.2717349
Oreste Tristani
European Central Bank (ECB) ( email )
Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany
0049 69 13440 (Phone)
0049 69 1344 6000 (Fax)
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