LENDING RELATIONSHIPS AND MONETARY POLICY.
Financial intermediation and bank spreads are the important elements in the analysis of business cycle transmission and monetary policy. We present a simple framework that introduces lending relationships, a relevant feature of financial intermediation that has been so far neglected in the monetary...
| Publicado en: | Economic Inquiry Vol. 51; no. 1; pp. 368 - 394 |
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| Autores principales: | , , |
| Formato: | Artículo |
| Publicado: |
Wiley-Blackwell
Jan2013
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| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=83710984&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 83710984 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00952583 EIQ jtl: Economic Inquiry issn: 00952583 maglogo: Y pubinfo: dt: Jan2013 vid: 51 iid: 1 pid: 480 pub: Wiley-Blackwell artinfo: ui: 83710984 10.1111/j.1465-7295.2012.00453.x ppf: 368 ppct: 26 formats: fmt: – @attributes: type: T – @attributes: type: P size: 999KB tig: atl: LENDING RELATIONSHIPS AND MONETARY POLICY. aug: au: AKSOY, YUNUS BASSO, HENRIQUE S. COTO ‐ MARTINEZ, JAVIER affil: Aksoy: School of Economics, Mathematics and Statistics, Birkbeck, University of London, Malet Street, WC1E 7HX, London, UK. Phone +44 20 7631 6407, Fax +44 20 7631 6416, E ‐ mail Basso: DepartmENt of Economics, University of Warwick, CovENtry CV4 7AL, UK. E ‐ mail Coto ‐ Martinez: DepartmENt of Economics and Finance, Brunel University, Uxbridge, Middlesex, UB8 3PH, UK. E ‐ mail su: Banking industry Loans Keynesian economics Public welfare policy Economic equilibrium Intermediation (Finance) Finance Banking research Taylor's rule Monetary policy Central banking industry sug: subj: Banking industry Loans Keynesian economics Public welfare policy Economic equilibrium Commercial Banking Other Depository Credit Intermediation Personal and commercial banking industry Savings Institutions Monetary Authorities-Central Bank Miscellaneous Intermediation Other Activities Related to Credit Intermediation All other non-depository credit intermediation All Other Nondepository Credit Intermediation Consumer Lending Emergency and Other Relief Services Other Individual and Family Services Administration of Human Resource Programs (except Education, Public Health, and Veterans' Affairs Programs) Intermediation (Finance) Finance Banking research Taylor's rule Monetary policy Central banking industry ab: Financial intermediation and bank spreads are the important elements in the analysis of business cycle transmission and monetary policy. We present a simple framework that introduces lending relationships, a relevant feature of financial intermediation that has been so far neglected in the monetary economics literature, into a dynamic stochastic general equilibrium model with staggered prices and cost channels. Our main findings are (a) banking spreads move countercyclically generating amplified output responses, (b) spread movements are important for monetary policymaking even when a standard Taylor Rule is employed, (c) modifying the policy rule to include a banking spread adjustment improves stabilization of shocks and increases welfare when compared to rules that only respond to output gap and inflation, and finally (d) the presence of strong lending relationships in the banking sector can lead to indeterminacy of equilibrium forcing the Central Bank to react to spread movements. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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