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We study the transmission of monetary policy in credit economies where money serves as a medium of exchange. We find that--in contrast to current conventional wisdom in policy-oriented research in monetary economics--the role of money in transactions can be a powerful conduit to asset prices and...
Persistent link: https://www.econbiz.de/10012479753
We provide empirical evidence of a novel liquidity-based transmission mechanism through which monetary policy influences asset markets, develop a model of this mechanism, and assess the ability of the quantitative theory to match the evidence
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We provide empirical evidence of a novel liquidity-based transmission mechanism through which monetary policy influences asset markets, develop a model of this mechanism, and assess the ability of the quantitative theory to match the evidence
Persistent link: https://www.econbiz.de/10012910296
We study the transmission of monetary policy in credit economies where money serves as a medium of exchange. We find that—in contrast to current conventional wisdom in policy-oriented research in monetary economics—the role of money in transactions can be a powerful conduit to asset prices...
Persistent link: https://www.econbiz.de/10012871153
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