TY - BOOK ID - 84657368 TI - Financial Crises in DSGE Models : A Prototype Model AU - Benes, Jaromir. AU - Kumhof, Michael. AU - Laxton, Douglas. PY - 2014 SN - 1475525079 1475524986 1475586248 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Financial crises. KW - Business cycles. KW - Economic cycles KW - Economic fluctuations KW - Cycles KW - Crashes, Financial KW - Crises, Financial KW - Financial crashes KW - Financial panics KW - Panics (Finance) KW - Stock exchange crashes KW - Stock market panics KW - Crises KW - Accounting KW - Banks and Banking KW - Macroeconomics KW - Money and Monetary Policy KW - Industries: Financial Services KW - Business Fluctuations KW - Financial Markets and the Macroeconomy KW - Money and Interest Rates: Forecasting and Simulation KW - Banks KW - Depository Institutions KW - Micro Finance Institutions KW - Mortgages KW - Public Administration KW - Public Sector Accounting and Audits KW - Monetary Policy, Central Banking, and the Supply of Money and Credit: General KW - Banking KW - Financial reporting, financial statements KW - Monetary economics KW - Finance KW - Financial statements KW - Bank credit KW - Macroprudential policy KW - Loans KW - Banks and banking KW - Finance, Public KW - Credit KW - Economic policy UR - https://www.unicat.be/uniCat?func=search&query=sysid:84657368 AB - This paper presents the theoretical structure of 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 financial cycles. A companion paper studies the simulation properties of MAPMOD. ER -