IMF Working Papers

Business Cycle with Bank Intermediation in Oil Economies

By Hamid R Tabarraei, Hamed Ghiaie, Asghar Shahmoradi

October 2, 2018

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Hamid R Tabarraei, Hamed Ghiaie, and Asghar Shahmoradi. Business Cycle with Bank Intermediation in Oil Economies, (USA: International Monetary Fund, 2018) accessed November 8, 2024

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.

Subject: Banking, Commodities, Economic sectors, Labor, Oil, Oil prices, Oil sector, Oil, gas and mining taxes, Prices, Taxes

Keywords: Adjustment cost, Banking, Capital stock stock-building, Central bank, Central bank lending, Cost of capital, Development fund, DSGE, Gas and mining taxes, Global, Interest rate, Lending branch, Market clearing, Oil, Oil economy, Oil firm, Oil price shock, Oil price volatility, Oil prices, Oil revenue, Oil sector, Oil-exporting countries, Oil-Reserve Fund, WP

Publication Details

  • Pages:

    38

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2018/999

  • Stock No:

    WPIEA2018226

  • ISBN:

    9781484377727

  • ISSN:

    1018-5941

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