; ; ; "ActiveFedora::Aggregation::ListSource" . a , ; "The Pass-Through of Sovereign Risk"; ; "batchuser@example.com"; "Bocola, Luigi"; "Federal Reserve Bank of Minneapolis"; "Credit policies", "Financial constraints", "Sovereign debt crises"; "E32 - Business Fluctuations; Cycles", "G01 - Financial Crises", "E44 - Financial Markets and the Macroeconomy", "G21 - Banks; Depository Institutions; Micro Finance Institutions; Mortgages"; "This paper examines the macroeconomic implications of sovereign credit risk in a business cycle model where banks are exposed to domestic government debt. The news of a future sovereign default hampers financial intermediation. First, it tightens the funding constraints of banks, reducing their available resources to finance firms (liquidity channel). Second, it generates a precautionary motive for banks to deleverage (risk channel). I estimate the model using Italian data, finding that i) sovereign credit risk was recessionary and that ii) the risk channel was sizable. I then use the model to evaluate the effects of subsidized long term loans to banks, calibrated to the ECB’s longer-term refinancing operations. The presence of strong precautionary motives at the time of policy enactment implies that bank lending to firms is not very sensitive to these credit market interventions."^^; "2015-04-16"; "2019-05-20T18:28:58.916495041+00:00"^^; "https://doi.org/10.21034/wp.722"; ; "https://creativecommons.org/licenses/by-nc/4.0/"; "Wed Oct 23 17:44:52 2019"; "https://creativecommons.org/licenses/by-nc/4.0/"; "Research Paper"; "90"; "Working paper (Federal Reserve Bank of Minneapolis. Research Department)"; "722"; "Credit policies", "Sovereign debt crises", "Financial constraints"; ; ; ; ; "Federal Reserve Bank of Minneapolis. Research Department"; "Published in: _Journal of Political Economy_ (Vol. 124, No. 4, 2016, pp. 879-926), https://doi.org/10.1086/686734."^^; ; "Publication" . ; .