Bank Behavior and the Cost Channel of Monetary Transmission PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Bank Behavior and the Cost Channel of Monetary Transmission PDF full book. Access full book title Bank Behavior and the Cost Channel of Monetary Transmission by Oliver Hülsewig. Download full books in PDF and EPUB format.
Author: Oliver Hülsewig
Publisher:
ISBN:
Category :
Languages : en
Pages : 41
Get Book Here
Book Description
This paper presents a New Keynesian model that dwells on the role of banks in the cost channel of monetary policy. Banks extend loans to firms in an environment of monopolistic competition by setting the loan rate according to a Calvo-type staggered price setting approach, which means that the adjustment of the aggregate loan rate to a monetary policy shock is sticky. We estimate the model for the Euro area by adopting a minimum distance approach. Our findings exhibit that, first, frictions on the loan market influence the propagation of monetary policy shocks as the pass-through of a change in the money market rate to the loan rate is incomplete, and, second, the cost channel is operating, but the effect is weak since inflation is driven by real unit labor costs rather than the loan rate. Our main conclusion is that the strength of the cost channel is mitigated as banks shelter firms from monetary policy shocks by smoothing lending rates.
Author: Oliver Hülsewig
Publisher:
ISBN:
Category :
Languages : en
Pages : 41
Get Book Here
Book Description
This paper presents a New Keynesian model that dwells on the role of banks in the cost channel of monetary policy. Banks extend loans to firms in an environment of monopolistic competition by setting the loan rate according to a Calvo-type staggered price setting approach, which means that the adjustment of the aggregate loan rate to a monetary policy shock is sticky. We estimate the model for the Euro area by adopting a minimum distance approach. Our findings exhibit that, first, frictions on the loan market influence the propagation of monetary policy shocks as the pass-through of a change in the money market rate to the loan rate is incomplete, and, second, the cost channel is operating, but the effect is weak since inflation is driven by real unit labor costs rather than the loan rate. Our main conclusion is that the strength of the cost channel is mitigated as banks shelter firms from monetary policy shocks by smoothing lending rates.
Author:
Publisher:
ISBN:
Category :
Languages : en
Pages :
Get Book Here
Book Description
Author: Ben S. Bernanke
Publisher: MIT Press
ISBN: 9780262523233
Category : Business & Economics
Languages : en
Pages : 398
Get Book Here
Book Description
Current issues in macroeconomics.
Author: Michael S. Gibson
Publisher:
ISBN:
Category : Bank loans
Languages : en
Pages : 56
Get Book Here
Book Description
Author: Ignazio Angeloni
Publisher: Cambridge University Press
ISBN: 9780521828642
Category : Business & Economics
Languages : en
Pages : 522
Get Book Here
Book Description
A systematic analysis of the impact of European Central Bank monetary policy on Eurozone national economies, first published in 2003.
Author: D. Bundesbank
Publisher: Springer
ISBN: 0230595995
Category : Business & Economics
Languages : en
Pages : 329
Get Book Here
Book Description
The start of the European monetary union gave additional impetus to the lively debate on the effects of monetary policy and the appropriate strategy for central banks. This book collects papers and comments by leading academics and central bankers such as O.Issing, M.King, B.McCallum, A.Meltzer, L.Svensson and H.Tietmeyer. The volume examines methodological questions, the actual role played by the financial sectors and labour markets in implementing monetary policy in Europe, and the likely future developments in these areas.
Author: Mr.Luis Brandao-Marques
Publisher: International Monetary Fund
ISBN: 1513529730
Category : Business & Economics
Languages : en
Pages : 54
Get Book Here
Book Description
Central banks in emerging and developing economies (EMDEs) have been modernizing their monetary policy frameworks, often moving toward inflation targeting (IT). However, questions regarding the strength of monetary policy transmission from interest rates to inflation and output have often stalled progress. We conduct a novel empirical analysis using Jordà’s (2005) approach for 40 EMDEs to shed a light on monetary transmission in these countries. We find that interest rate hikes reduce output growth and inflation, once we explicitly account for the behavior of the exchange rate. Having a modern monetary policy framework—adopting IT and independent and transparent central banks—matters more for monetary transmission than financial development.
Author: Frank Hespeler
Publisher: Cuvillier Verlag
ISBN: 3867277605
Category :
Languages : en
Pages : 289
Get Book Here
Book Description
Author: Mr.Giovanni Dell'Ariccia
Publisher: International Monetary Fund
ISBN: 1484381130
Category : Business & Economics
Languages : en
Pages : 41
Get Book Here
Book Description
We present evidence of a risk-taking channel of monetary policy for the U.S. banking system. We use confidential data on the internal ratings of U.S. banks on loans to businesses over the period 1997 to 2011 from the Federal Reserve’s survey of terms of business lending. We find that ex-ante risk taking by banks (as measured by the risk rating of the bank’s loan portfolio) is negatively associated with increases in short-term policy interest rates. This relationship is less pronounced for banks with relatively low capital or during periods when banks’ capital erodes, such as episodes of financial and economic distress. These results contribute to the ongoing debate on the role of monetary policy in financial stability and suggest that monetary policy has a bearing on the riskiness of banks and financial stability more generally.
Author: Eugenio Gaiotti
Publisher:
ISBN:
Category : Capital
Languages : en
Pages : 56
Get Book Here
Book Description
