IDEAS home Printed from https://ideas.repec.org/h/elg/eechap/21716_24.html
   My bibliography  Save this book chapter

The integration of the financial system in macroeconometric models for policy simulation

In: Handbook of Financial Integration

Author

Listed:
  • Riccardo Barbieri Hermitte
  • Carlo A. Favero
  • Valeria Macauda
  • Mara Meacci
  • Francesco Nucci
  • Cristian Tegami

Abstract

The objective of this chapter is to provide a survey of the role of financial factors in macroeconometric models for policy simulation. The chapter first describes how the failure of existing models to predict the financial crises and characterize its transmission mechanisms has led to important advances in the mainstream modelling approach, with a prominent role assigned to financial intermediation. The chapter then uses the lens of a stock-flow consistent model developed at the Italian Department of Treasury to illustrate the centrality of sectoral balance sheets in this approach and assess its ability to capture some of the patterns observed during the financial crisis. The discussion takes as reference the criticisms posed to dynamic stochastic general equilibrium (DSGE) modelling after both the subprime loans and Euro-area sovereign debt crises.

Suggested Citation

  • Riccardo Barbieri Hermitte & Carlo A. Favero & Valeria Macauda & Mara Meacci & Francesco Nucci & Cristian Tegami, 2024. "The integration of the financial system in macroeconometric models for policy simulation," Chapters, in: Guglielmo M. Caporale (ed.), Handbook of Financial Integration, chapter 24, pages 565-583, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:21716_24
    as

    Download full text from publisher

    File URL: https://www.elgaronline.com/doi/10.4337/9781803926377.00035
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Economics and Finance;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:elg:eechap:21716_24. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Darrel McCalla (email available below). General contact details of provider: http://www.e-elgar.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.