BOHÁ, RADIM; Ccaron; EK; MENDIZÁBAL, HUGO RODRÍGUEZ - In: Journal of Money, Credit and Banking 39 (2007) 6, pp. 1429-1455
This paper analyzes the propagation of monetary policy shocks through the creation of credit in an economy. Models of the monetary transmission mechanism typically feature responses that last for a few quarters contrary to what the empirical evidence suggests. To propagate the impact of monetary...