Esteban Prieto
Deutsche Bundesbank
Network
Latest external collaboration on country level. Dive into details by clicking on the dots.
Publication
Featured researches published by Esteban Prieto.
Social Science Research Network | 2016
Sandra Eickmeier; Norbert Metiu; Esteban Prieto
We document that expansionary monetary policy shocks are less effective at stimulating output and investment in periods of high volatility compared to periods of low volatility, using a regime-switching vector autoregression. Exogenous policy changes are identified by adapting an external instruments approach to the non-linear model. The lower effectiveness of monetary policy can be linked to weaker responses of credit costs, suggesting a financial accelerator mechanism that is weaker in high volatility periods. To rationalize our robust empirical results, we use a macroeconomic model in which financial intermediaries endogenously choose their capital structure. In the model, the leverage choice of banks depends on the volatility of aggregate shocks. In low volatility periods, financial intermediaries lever up, which makes their balance sheets more sensitive to aggregate shocks and the financial accelerator more effective. On the contrary, in high volatility periods banks decrease leverage, which renders the financial accelerator less effective; this in turn decreases the ability of monetary policy to improve funding conditions and credit supply, and thereby to stimulate the economy. Hence, we provide a novel explanation for the non-linear effects of monetary stimuli observed in the data, linking the effectiveness of monetary policy to the procyclicality of leverage.
Journal of Economic Dynamics and Control | 2014
Claudia M. Buch; Sandra Eickmeier; Esteban Prieto
Journal of Money, Credit and Banking | 2014
Claudia M. Buch; Sandra Eickmeier; Esteban Prieto
Review of Finance | 2015
Thomas K. Kick; Esteban Prieto
International Finance | 2014
Claudia M. Buch; Esteban Prieto
Journal of Applied Econometrics | 2016
Esteban Prieto; Sandra Eickmeier; Massimiliano Giuseppe Marcellino
Chapters in SUERF Studies | 2012
Hermann Remsperger; Stephen G. Cecchetti; Stefan Ingves; Alberto Giovannini; Jens Weidmann; Alexandros Vardoulakis; Stefano Neri; Jürgen Stark; Elod Takats; Christian Upper; Claudia M. Buch; Sandra Eickmeier; Esteban Prieto; Abdul Abiad; Giovanni Dell'ariccia; Bin Grace Li; Francesco Mazzaferro
Chapters in SUERF Studies | 2012
Claudia M. Buch; Sandra Eickmeier; Esteban Prieto
Archive | 2016
Angela Abbate; Sandra Eickmeier; Esteban Prieto
Archive | 2014
Thomas Krause; Konstantin Kiesel; Manuel Buchholz; Jana Ohls; Christoph Schröder; Stefan Eichler; Lisa Cyon; Matia Ossandon Busch; Claudia M. Buch; Michael Koetter; Felix Noth; Sascha Steffen; Marlene Karl; Esteban Prieto