Macro and micro prudential policies: sweet and lowdown in a credit network agent based model
Giri, F., Catullo, E., Gallegati, M. - The paper presents an agent-based model reproducing a stylized credit network that evolves endogenously through the individual choices of firms and banks. We introduce in this framework a financial stability authority in order to test the effects of different prudential policy measures designed to improve the resilience of the economic system.