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Crossing the credit channel : credit spreads and firm heterogeneity

Anderson, Gareth; Cesa-Bianchi, Ambrogio - 2020

Credit spreads rise after a monetary policy tightening, yet spread reactions are heterogeneous across firms. Exploiting information from a panel of corporate bonds matched with balance sheet data for U.S. non-financial firms, we document that firms with high leverage experience a more pronounced...

Persistent link: https://www.econbiz.de/10012485947

Monetary policy and risk-premium shocks in Hungary : results from a large Bayesian VAR

Carare, Alina; Popescu, Adina - 2011

Persistent link: https://www.econbiz.de/10009422258

Monetary policy transmission and financial stability in a LIC : the case of Bangladesh

Rafiq, Sohrab - 2015

This paper explores how monetary policy affects the real economy and its efficacy in promoting financial stability in a large low income country. This paper shows that monetary policy modestly impacts real economic activity and inflation via the bank lending and financial accelerator channels....

Persistent link: https://www.econbiz.de/10011408240

Negative monetary policy rates and portfolio rebalancing : evidence from credit register data

Bottero, Margherita; Minoiu, Camelia; Peydró, José-Luis; … - 2019

We study negative interest rate policy (NIRP) exploiting ECB's NIRP introduction and administrative data from Italy, severely hit by the Eurozone crisis. NIRP has expansionary effects on credit supply-- -and hence the real economy---through a portfolio rebalancing channel. NIRP affects banks...

Persistent link: https://www.econbiz.de/10012009439

Excess Liquidity and the Effectiveness of Monetary Policy : Evidence From Sub-Saharan Africa

Saxegaard, Magnus - 2006

This paper examines the pattern of excess liquidity in sub-Saharan Africa and its consequences for the effectiveness of … monetary policy. The paper argues that understanding the consequences of excess liquidity requires quantifying the extent to … which commercial bank holdings of excess liquidity exceed levels required for precautionary purposes. It proposes a …

Persistent link: https://www.econbiz.de/10014400369

Sovereign Risk and Belief-Driven Fluctuations in the Euro Area

Corsetti, Giancarlo - 2013

Sovereign risk premia in several euro area countries have risen markedly since 2008, driving up credit spreads in the private sector as well. We propose a New Keynesian model of a two-region monetary union that accounts for this “sovereign risk channel.” The model is calibrated to the euro...

Persistent link: https://www.econbiz.de/10014394535

Leaning Against the Wind and the Timing of Monetary Policy

Agur, Itai - 2013

If monetary policy is to aim also at financial stability, how would it change? To analyze this question, this paper develops a general-form framework. Financial stability objectives are shown to make monetary policy more aggressive: in reaction to negative shocks, cuts are deeper but...

Persistent link: https://www.econbiz.de/10014395272

The Effectiveness of Monetary Policy Transmission Under Capital Inflows : Evidence from Asia

Jain Chandra, Sonali - 2012

The effectiveness of the monetary policy transmission mechanism in open economies could be impaired if interest rates are driven primarily by global factors, especially during periods of large capital inflows. The main objective of this paper is to assess whether this is true for emerging...

Persistent link: https://www.econbiz.de/10014395602

Financial Structure, Bank Lending Rates, and the Transmission Mechanism of Monetary Policy

Kourelis, Angeliki - 1994

The stickiness of bank lending rates with respect to money market rates is often regarded as an obstacle to the smooth transmission of monetary policy impulses. Yet, no systematic measure of the different degree of lending rate stickiness across countries has been attempted. This paper provides...

Persistent link: https://www.econbiz.de/10014396171

Financial Globalization and Monetary Policy

Devereux, Michael B. - 2007

What does financial globalization imply for the design of monetary policy? Does the case for price stability change in an environment of large cross country gross asset holdings? This paper is concerned with the effects of monetary policy under endogenous international portfolio choice and...

Persistent link: https://www.econbiz.de/10014399256