This paper tests for the presence of a credit channel (particularly a bank-lending sub-channel) for monetary policy in … with the existence of a broad credit channel, whereas the bank-lending channel seems to be operational only under certain … suggests the existence of a clear relationship between the presence of a credit (bank lending) channel, the efficiency level of …

Quantity rationing of credit, when firms are denied loans, has greater potential to explain macroeconomic fluctuations … than borrowing costs. This paper develops a DSGE model with both types of financial frictions. A deterioration in credit … receiving financing, which leads to a persistent fall in real activity. Empirical evidence confirms that credit market …

In this paper we test the hypothesis that credit policies are pro-cyclical. Our approach is based on a stochastic … household borrowers during a huge cycle and its aftermath yields evidence of time-varying credit policy. We find that the focus … of credit policy changed from collateral to current income during the cycle. Instead of a credit crunch, ie, an overall …

base money, which is generally considered the cornerstone of the central bank’s power to set the short-term interest rate … settlement money that competes with the liabilities of the central bank. The paper presents a model on the implementation of … monetary policy in an economy where such private substitutes for central bank money are available for the settlement of …

, it is shown that the exchange rate is much more sensitive to changes in money supply than when technical trading is …