Monetary Policy and Bank Lending
66 Pages Posted: 19 Jun 2004 Last revised: 19 Apr 2021
Date Written: April 1993
This paper surveys recent work that relates to the "lending" view of monetary policy transmission. It has three main goals: 1) to explain why it is important to distinguish between the lending and "money" views of policy transmission; 2) to outline the microeconomic conditions that are needed to generate a lending channel; and 3) to review the empirical evidence that bears on the lending view.
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