Based on a dynamic panel data model, this paper estimates the impact of lockdown policies on inflation with metropolitan-level data in the US. After controlling for the unit/time fixed effects and a number of aggregate demand/supply shifters, lockdown policies created a mild inflationary effect...

In a market-based financial system, banking and capital market developments are inseparable. We document evidence that balance sheets of market-based financial intermediaries provide a window on the transmission of monetary policy through capital market conditions. Short-term interest rates are...