Question about model setting

Dear Professor Pfeifer,

I mean to embed macro-prudential policy into DSGE model, and I read that many papers generally consider it based on credit constraint of Kiyotaki and Moore(1997). I wonder if we can consider macro-prudential policy in a model based on financial accelerator of BGG(1999). Is there any authoritative paper talking about this ? or it is hardly realized ?

Any advice will be appreciated, and thank you for your time.

I’m a neophyte in terms of BGG and the macroprudential policy.

If your target policy instrument is the reserve requirement ratio rr_t, you may have a look at:

The word “macroprudential” appears 11 times in this file :grinning_face_with_smiling_eyes:

But I did not read it thoroughly and have no expertise to judge whether it is “authoritative”.

Welcome your feedback after reading :handshake: :handshake: :handshake: