Jayaratne, Jith; Morgan, Donald P - In: Journal of Money, Credit and Banking 32 (2000) 1, pp. 74-92
Following the investment-cash flow literature, we test whether bank lending is constrained by the availability of … insured deposits--a necessary condition for the existence of a bank lending channel of monetary policy. We treat insured … frictions forge a link between the supply of bank loans and the supply of insured deposits. The frictions seem to matter only at …