A Macro-prudential Policy Aimed At Financial Accelerator

With the development of technology,the degree of economic globalization is also further deepened,which brings about the side-effects in the same time.The Crisis outburst in the USA still remains its disadvantages to the economy worldwide now.However,all of these can't get away with financial accelerator.The financial accelerator theory believes that economy itself can be self-amplified,and this amplification is produced by the margin cost of borrowing.Various analytic methods were brought up and made the theory becomes more mature.In the meantime,our Chinese researched Zhao also proved the existence of financial accelerator phenomenon in China using TVAR model.This essay aims at finding a suitable macro-prudential policy to dampen the amplification.The economy system in the USA and other western developed countries is quite complete,also the awareness of consumption is pretty popular,thus they tend to oversee the economy from the perspective of household.However,China is still seeking for a suitable pace of development,and the prosperous in industries has not been totally conveyed to household,so we still choose the industry as the target of our macro-prudential policy.This essay views DSGE as the basic model,and use the dynare code in MATLAB to execute the model.Finally we get the conclusion that macro-prudential policy can effectively shrink the scale of instability of economy.