IWH Research Seminar
Multi-period Loans, Non-linearities and Monetary Policy: A Quantitative Evaluation
(Bank of England)
IWH conference room
We study the implications of multi-period mortgage loans for monetary policy, considering several realistic modifications – fixed interest rate contracts, lower bound constraint on newly granted loans, and possibility for the collateral constraint to become slack – to an otherwise standard DSGE model with housing and financial intermediaries.