DO CAPITAL ADEQUACY REQUIREMENTS MATTER FOR MONETARY POLICY?
نویسندگان
چکیده
منابع مشابه
Does Bank Capital Matter for the Transmission of Monetary Policy?
Traditional monetary theory has largely ignored the role of bank equity. Bank-centred accounts of how monetary policy affects the real economy usually focus on the role of reserves and reserve requirements in determining the volume of demand deposits and, in the case of the bank lending channel, bank loans. As Benjamin Friedman (1991) observed, “Traditionally, most economists have regarded the ...
متن کاملBank Capital and Monetary Policy ∗
This paper develops a quantitative, monetary model in which agency problems affect both the relationship between banks and firms as well as that linking banks to their depositors. As a result, bank capital and entrepreneurial net worth jointly determine aggregate investment, and help propagate over time shocks affecting the economy. We find that the effects of monetary policy shocks depend on t...
متن کاملDoes Bank Capital Matter for Monetary Transmission?
raditional monetary theory has largely ignored the role of bank equity. Bank-centered accounts of how monetary policy affects the real economy usually focus on the role of reserves and reserve requirements in determining the volume of demand deposits and, in the case of the bank lending channel, bank loans. As Friedman (1991) observed, “Traditionally, most economists have regarded the fact that...
متن کاملIntroduction to monetary policy and capital accumulation
The papers in this symposium address the issue of multiple equilibria that can be induced by monetary policy in models with capital accumulation. In particular they examine how the “Taylor Principle”, under which interest rates respond more than proportionately to increases in inflation, can generate multiple equilibria. They also explore the design of policies to avoid the problem of multiple ...
متن کاملCapital Controls and Optimal Chinese Monetary Policy
We examine optimal monetary policy under prevailing Chinese policies – including capital controls, nominal exchange rate targets, and costly sterilization of foreign capital inflows. China’s combination of capital controls and exchange rate pegs disrupts its monetary policy, precluding adjustments that could maintain macroeconomic stability following a set of shocks that mirror its experience d...
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ژورنال
عنوان ژورنال: Economic Inquiry
سال: 2008
ISSN: 0095-2583,1465-7295
DOI: 10.1111/j.1465-7295.2007.00085.x