A Step-by-Step Overview of Gertler's and Karadi's "Model of Unconventional Monetary Policy"

Tissen, Colin; Owczarz, Wiktor

ISBN 10: 3668540543 / ISBN 13: 9783668540545

Published by Grin Verlag, 2017

About this Item

Seller Inventory # I-9783668540545

Bibliographic Details

• Title: A Step-by-Step Overview of Gertler's and Karadi's "Model of Unconventional Monetary Policy"
• Publisher: Grin Verlag
• Publication Date: 2017
• Language: English
• ISBN 10: 3668540543
• ISBN 13: 9783668540545
• Binding: Soft cover
• Condition: New

About this title

Synopsis

Research Paper (undergraduate) from the year 2017 in the subject Economics - Finance, grade: 8.5, Maastricht University, course: Macroeconomics I, language: English, abstract: Our goal in this paper is to replicate the model of Gertler and Karadi (2011) and to give an elaborate overview of the way in which this model works. Instead of showing the final results, we provide a step-by-step overview of all the necessary calculations and derivations that lead to the ultimate model. Our last objective is to explain the relevance and the impact that the paper of Gertler and Karadi had. First, we describe the model with separate sections for the different agents that play a role in the model: households, financial intermediaries, intermediate goods firms, capital producing firms, retail firms, and the government (including the central bank). Secondly, we perform a Taylor approximation and import out model into Matlab. Thirdly, the model is analysed and the results are given. Fourthly, the impact of the Gertler and Karadi paper is discussed.