Business Cycle with Bank Intermediation in Oil Economies

39 Pages Posted: 15 Nov 2018

See all articles by Hamid Tabarraei

Hamid Tabarraei

International Monetary Fund (IMF)

Hamed Ghiaie

University of Cergy-Pontoise

Asghar Shahmoradi

University of Calgary - Department of Economics; International Monetary Fund (IMF)

Date Written: October 2018

Abstract

The structural model in this paper proposes a micro-founded framework that incorporates an active banking sector with an oil-producing sector. The primary goal of adding a banking sector is to examine the role of an interbank market on shocks, introduce a national development fund and study its link to the banking sector and the government. The government and the national development fund directly play key roles in the propagation of the oil shock. In contrast, the banking sector and the labor market, through perfect substitution between the oil and non-oil sectors, have major indirect impacts in spreading shocks.

Keywords: Banking, Financial crises, Central banks and their policies, Oil-exporting countries, Oil-Reserve Fund, DSGE, Financial Markets and the Macroeconomy, General

JEL Classification: E44, E50, E58, G01, G21, G33

Suggested Citation

Tabarraei, Hamid and Ghiaie, Hamed and Shahmoradi, Asghar, Business Cycle with Bank Intermediation in Oil Economies (October 2018). IMF Working Paper No. 18/226. Available at SSRN: https://ssrn.com/abstract=3285224

Hamid Tabarraei (Contact Author)

International Monetary Fund (IMF) ( email )

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

Hamed Ghiaie

University of Cergy-Pontoise ( email )

33 Boulevard du Port
Cergy-Pontoise Cedex, Cedex 95011
France

Asghar Shahmoradi

University of Calgary - Department of Economics ( email )

2500 University Drive, NW
Calgary, Alberta T2N 1N4
Canada

International Monetary Fund (IMF) ( email )

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

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