The article explores the role of financial intermediation in the monetary transmission mechanism. It discusses how and why shocks that affect lenders' willingness to lend can have an impact on economic activity, and why this needs to be factored into analyses of the interaction of monetary...

This article examines explanations for the recent performance of the United States economy. We examine both `New Economy' and other more conventional explanations. The second objective is to see whether `New Economy' factors have had an impact on the New Zealand economy.