Optimal Policy Analysis under Incomplete Financial Market

Research Project

Project/Area Number	26780153
Research Category	Grant-in-Aid for Young Scientists (B)
Allocation Type	Multi-year Fund
Research Field	Economic policy
Research Institution	Keio University
Principal Investigator	TERANISHI Yuki 慶應義塾大学, 商学部(三田), 准教授 (50710456)
Project Period (FY)	2014-04-01 – 2017-03-31
Project Status	Completed (Fiscal Year 2016)
Budget Amount *help	¥2,600,000 (Direct Cost: ¥2,000,000、Indirect Cost: ¥600,000) Fiscal Year 2016: ¥780,000 (Direct Cost: ¥600,000、Indirect Cost: ¥180,000) Fiscal Year 2015: ¥780,000 (Direct Cost: ¥600,000、Indirect Cost: ¥180,000) Fiscal Year 2014: ¥1,040,000 (Direct Cost: ¥800,000、Indirect Cost: ¥240,000)
Keywords	Incomplete market / search and matching / optimal policy / 最適金融政策 / 不完全市場 / 最適政策 / ローン市場 / 金融政策 / マクロプルーデンス政策 / サーチ理論 / 不完な金融市場
Outline of Final Research Achievements	Research outcomes are in three papers, “Optimal Macroprudential Policy”, “Optimal Policy Analysis in a New Keynesian Economy with Credit Market Search” , and “Financial Frictions and Policy Cooperation: A Case with Monopolistic Banking and Staggered Loan Contracts.” These papers show that optimal policy requires procyclicality between real economic activity and financial activity under a theoretical model with an incomplete financial market by a search and matching mechanism.