Brown Bag seminar in Economics | Yijia Chen
Welcome to the Brown Bag Seminar in Economics organized by the Department of Economics, SSE. The seminar speaker is Yijia Chen, SSE who will present ''Dollarized Corporate Loan and the Optimal Monetary Policy''.
We build a heterogeneous-firm New-Keynesian model to study dollarized corporate loans and their impacts on a small open economy. In our model, firms borrow from a representative household and the rest of the world to finance their investments. Corporate loans are denominated in either home currency or foreign currency. When a negative shock reduces foreign lending, home currency depreciates, leading to higher real debt burdens for foreign currency borrowers. Our goal is to study the potential amplification mechanism and its implication on the central bank's optimal monetary policy.
Yijia Chen is a Ph.D. student at SSE, in the Department of Economics.
This seminar takes place at Stockholm School of Economics, Sveavägen 65, in room 350.
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