MONETARY POLICY TRANSMISSION IN A MACROECONOMIC AGENT-BASED MODEL
Authored by Stephen Kinsella, Joeri Schasfoort, Antoine Godin, Dirk Bezemer, Alessandro Caiani
Date Published: 2017
DOI: 10.1142/s0219525918500030
Sponsors:
No sponsors listed
Platforms:
Java
Model Documentation:
Other Narrative
Flow charts
Mathematical description
Model Code URLs:
https://github.com/S120/Interbank
Abstract
In this paper we explore the variety of monetary policy transmission
channels in an agent-based macroeconomic model. We identify eight
transmission channels and present a model based on [Caiani et al., J.
Econ. Dyn. Contr. 69 (2016) 375-480], extended with an interbank market.
We then analyze model simulation results of interest rate shocks in
terms of GDP and inflation for four of the transmission channels. We
find these effects to be small, in line with the view that monetary
policy is a weak tool to control inflation.
Tags
Agent-based modeling
Markets
Crisis
Inflation
Stock flow consistent modeling
Monetary policy
transmission
Rate pass-through
Euro area