Deniz Igan, Alain Kabundi, Francisco Nadal De Simone, … - Economic Research Southern Africa (ERSA) - 2013
This paper evaluates the strength of the balance sheet channel in the U.S. monetary policy transmission mechanism over the past three decades. Using a Factor-Augmented Vector Autoregression model on an expanded data set, including sectoral balance sheet variables, we show that the balance sheets...