Assessing the Impact of Basel III: Evidence from Structural Macroeconomic Models
“… the effects of regulation are positive on GDP whenever the costs and benefits of regulation are both introduced. However, this result may be associated with a temporary economic slowdown in the transition to Basel III, which can be accommodated by monetary policy.” Lire
Assessing the Impact of Basel III: Evidence from Structural Macroeconomic Models
“This paper… reviews the different channels of transmission of prudential policy highlighted in the literature and… provides a quantitative assessment of the impact of Basel III reforms using “off-the-shelf” DSGE models. It shows that the effects of regulation are positive on GDP whenever the costs and benefits of regulation are both introduced.” Lire