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Countercyclical liquidity policy and credit cycles : evidence from macroprudential and monetary policy in Brazil

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dc.contributor.author Blanco Barroso, João Barata R.
dc.contributor.author Gonzalez, Rodrigo Barbone
dc.contributor.author Peydró, José-Luis
dc.contributor.author Doornik, Bernardus F. Nazar Van
dc.date.accessioned 2020-02-26T12:06:53Z
dc.date.available 2020-02-26T12:06:53Z
dc.date.issued 2020
dc.identifier.uri http://hdl.handle.net/10230/43719
dc.description.abstract We show that countercyclical liquidity policy smooths credit supply cycles, with stronger crisis effects. For identification, we exploit the Brazilian supervisory credit register and liquidity policy changes on reserve requirements, that affected banks differentially and have a monetary and prudential purpose. Liquidity policy strongly attenuates both the credit crunch in bad times and high credit supply in booms. Strong economic effects are twice as large during the crisis easing than during the boom tightening. Finally, in crises, liquidity easing: increase less credit supply by more financially constrained banks; and collateral requirements increase substantially, especially by banks providing higher credit supply.
dc.format.mimetype application/pdf
dc.language.iso eng
dc.relation.ispartof Economics and Business Working Papers Series; 1698
dc.subject.other Liquiditat (Economia)
dc.title Countercyclical liquidity policy and credit cycles : evidence from macroprudential and monetary policy in Brazil
dc.type info:eu-repo/semantics/workingPaper
dc.subject.keyword Liquidity (Economics)
dc.subject.keyword Reserve requirements
dc.subject.keyword Credit cycles
dc.subject.keyword Macroprudential and monetary policy
dc.rights.accessRights info:eu-repo/semantics/openAccess

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