adequate regulation, intermediation may fail to do this. This paper studies the effects of a production shock in a closed … economy and compares abilities of market-based and bank-based financial systems in processing the shock. Unregulated banking …

This paper explains and evaluates the transmissions and effectiveness of monetary policy shock in a simple Cash … monetary shock and the cost channel of monetary policy. Calvo's (1983) sticky price monetary model examines the real effects of … participation monetary shock or Keynesian type of sticky price/wage, to examine the lower nominal interest rate and increasing real …

financial institutions in the transmission of credit and technology shocks to the real economy. A positive credit shock, defined … between loan and deposit rates. The effects of the credit shock tend to be highly persistent even without price rigidities and …