01794cas a2200265 a 4500 AALejournalIMF014327 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475540239 1018-5941 BD-DhAAL BD-DhAAL Benes, Jaromir. Financial Crises in DSGE Models : Selected Applications of MAPMOD / Jaromir Benes, Michael Kumhof, Douglas Laxton. Washington, D.C. : International Monetary Fund, 2014. 1 online resource (55 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper, together with a technical companion paper, presents MAPMOD, a new IMF model designed to study vulnerabilities associated with excessive credit expansions, and to support macroprudential policy analysis. In MAPMOD, bank loans create purchasing power that facilitates adjustments in the real economy. But excessively large and risky loans can impair balance sheets and sow the seeds of a financial crisis. Banks respond to losses through higher spreads and rapid credit cutbacks, with adverse effects for the real economy. These features allow the model to capture the basic facts of both the pre-crisis and crisis phases of financial cycles. Mode of access: Internet Kumhof, Michael. Laxton, Douglas. IMF Working Papers; Working Paper ; No. 2014/056 Full text available on IMF http://elibrary.imf.org/view/journals/001/2014/056/001.2014.issue-056-en.xml IMF e-Library