Business Cycle with Bank Intermediation in Oil Economies

Author/Editor:

Hamid R Tabarraei ; Hamed Ghiaie ; Asghar Shahmoradi

Publication Date:

October 2, 2018

Electronic Access:

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

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. 18/226

English

Publication Date:

October 2, 2018

ISBN/ISSN:

9781484377727/1018-5941

Stock No:

WPIEA2018226

Format:

Paper

Pages:

38

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