sources of (potentially time-varying) credit spreads and to allow a role for the central bank’s balance sheet in determining … prescriptions and to consider additional dimensions of central bank policy — variations in the size and composition of the central … bank’s balance sheet as well as payment of interest on reserves — alongside the traditional question of the proper …

of the non-financial corporate sector and bank lending behaviour on the one hand, and the effectiveness of monetary … in terms of steady-state credit spreads, bank lending policies and corporate sector financial health. We embed these … simulation results suggest that certain parameters may merit particular attention. For example, the sensitivity of bank lending …