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Brexit and macroprudential regulation: a DSGE perspective

  • Jürgen JergerEmail author
  • Jenny Körner
Original Paper
  • 28 Downloads

Abstract

This paper uses a small and simple theoretical DSGE model in order to conduct some exercises in comparative dynamics of shocks that can be associated with Brexit. We do so by comparing two policy environments, one where a flexible macroprudential regulation (FMR) is in place and one, where this is not the case. This enables us to evaluate whether and to what extent FMR helps to mitigate the Brexit related shocks. We conclude that FMR would indeed be helpful, although in quantitative terms only slightly so.

Notes

Acknowledgments

We are grateful for comments of participants of the workshop “The Influence of Brexit on the EU28: Banking and Capital Market Adjustments plus Macro Perspectives” on October 12, 2018 in Frankfurt/Main.

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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2019

Authors and Affiliations

  1. 1.University of RegensburgRegensburgGermany
  2. 2.Leibniz Institute for East and Southeast European StudiesRegensburgGermany
  3. 3.European Central BankFrankfurtGermany

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