Manuel Gloria and Chiara Punzo The expansion of non-bank financial institutions (NBFIs) is transforming the financial landscape and introducing fresh challenges for financial stability and oversight at the same time as creating opportunities. Using a dynamic stochastic general equilibrium (DSGE) model, we find that while NBFIs may enhance long-term welfare for households and entrepreneurs in … Continue reading Monetary policy, state-dependent bank capital requirements and the role of non-bank financial intermediaries