The impact of unconventional monetary policy on credit issuance and asset prices: a structural model of demand for the asset and liabilities of a bank's balance sheet
Unconventional monetary policy such as large scale asset purchases, LTRO or negative interest rates have inextricably intertwined impacts on banks' balance sheets. As such, this project aims to estimate a structural model of demand for the asset and liabilities of a bank's balance sheet, that can be used to estimate counterfactuals through market clearing. Through these counterfactuals, we aim to evaluate the impact of unconventional monetary policy on credit issuance, the cost of credit, and asset prices.