The Basel Committee's Research Task Force Transmission Channel project aimed at generating new research on various aspects of the credit channel linkages in the monetary transmission mechanism. Under the credit channel view, financial intermediaries play a critical role in the allocation of...

We analyze the impact of monetary policy instruments on interbank lending rates and retail bank lending in China using an extended version of the model of Porter and Xu (2009). Unlike the Central banks of advanced economies, the People's Bank of China uses changes in the required reserve ratios...

The recent global financial crisis has led central banks to rely heavily on "unconventional" monetary policies. This alternative approach to policy has generated much discussion and a heated and at times confusing debate. The debate has been complicated by the use of different definitions and...

The major Central Banks have cut their key rates sharply in recent months in response to the rapid slowdown in the economy. These conventional monetary policies have shown their limitations, however. In the first place, central banks have little room for manoeuvre: Target rates are now between 0...