CEU Electronic Theses and Dissertations, 2015
| Author | Iker, Áron |
|---|---|
| Title | The Hungarian foreign currency loan bailout scheme in a New-Keynesian modeling framework |
| Summary | The objective of my thesis is to investigate the economic effects of the foreign currency loan bailout schemes implemented by the Hungarian government. These measures are studied in a New-Keynesian modeling framework, and they are introduced as exogenous shocks to the system. The applied structure is a small open economy model supplemented by a linked housing-borrowing part, where the seminal paper of Iacoviello(2005) is heavily utilized. The results underpin other economists’ opinion: apart from the welfare distribution across saving and borrowing households, there is a temporary rise in consumption and output, but in the middle run both indicators take a negative turn, indicating an economic recession ceteris paribus. The paper can be extended by introducing hyperbolic preferences and a more realistic risk premium evolution process. |
| Supervisor | István Kónya |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2015/iker_aron.pdf |
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