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We estimate a logit mixture vector autoregressive model describing monetary policy transmission in the euro area over the period 2003Q1–2019Q4 with a special emphasis on credit conditions. With the help of this model, monetary policy transmission can be described as mixture of two states...
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innovation. By incorporating a loan management technology and a bank equity channel we can evaluate the efficacy of several … financial bubble significantly while central bank intervention ("leaning against the wind") proves to be less effective. A …
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to a fall in output, monetary aggregates, and factor prices. In contrast to an alternative model specification with money …
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that the central bank has an important responsibility for stabilizing output. Output stabilization is an instrument to …
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aggregate and bank-level data. The main findings show that the amplitude of the real business cycle was becoming smaller during …
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