Business Cycle with Bank Intermediation in Oil Economies
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Summary:
The structural model in this paper proposes a micro-founded framework that incorporates an active banking sector with an oil-producing sector. The primary goal of adding a banking sector is to examine the role of an interbank market on shocks, introduce a national development fund and study its link to the banking sector and the government. The government and the national development fund directly play key roles in the propagation of the oil shock. In contrast, the banking sector and the labor market, through perfect substitution between the oil and non-oil sectors, have major indirect impacts in spreading shocks.
Series:
Working Paper No. 2018/999
Subject:
Banking Commodities Economic sectors Labor Oil Oil prices Oil sector Oil, gas and mining taxes Prices Taxes
English
Publication Date:
October 2, 2018
ISBN/ISSN:
9781484377727/1018-5941
Stock No:
WPIEA2018226
Pages:
38
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