Kilponen, Juha; Milne, Alistair - Suomen Pankki - 2007
Building on Cecchetti and Li (2005), we show that the bank lending channel affects monetary policy trade-offs only when … monetary policy model. In our calibrated model the resulting impact of the bank lending channel on output-inflation trade-offs … relatively large impact on marginal costs, variation of bank loan margins improves monetary policy trade-offs. The new Basel …