the bond and loan market directly affect current goods demand. The credit channel amplifies the output effects of isolated …This paper integrates a money and credit market into a static approximation of the baseline New Keynesian model based … on a money-and-credit-in-the-utility approach, in which real balances and borrowing contribute to the household’s utility …

Corporate bond markets are a growing source of funding for companies throughout the world. How does a firm's debt … monetary policy disproportionately impacts bond-financed firms because bonds have higher costs of financial distress relative … of a standard bank lending channel and suggests that bond financing is not a frictionless "spare tire." …