The Bank Lending Channel of Conventional and Unconventional Monetary Policy

Conventional and Unconventional Monetary Policy

The authors extend a standard New Keynesian model to incorporate heterogeneity in spending opportunities and two sources of (potentially time-varying) credit spreads and to allow a role for the central bank’s balance sheet in equilibrium determination. They use the model to investigate the implications of imperfect financial intermediation for familiar monetary policy prescriptions, and to cons...

Bank Lending and Monetary Policy: A Comment

Unconventional Monetary Policy and the Dollar: Conventional Signs, Unconventional Magnitudes

We examine the effects of unconventional monetary policy surprises on the value of the dollar using high-frequency intraday data and contrast them with the effects of conventional policy tools. Identifying monetary policy surprises from changes in interest rate future prices in narrow windows around policy announcements, we find that monetary policy surprises since the Federal Reserve lowered i...

Is There a Bank Lending Channel of Monetary Policy in Latvia? Evidence from Bank Level Data

2 Introduction 3 1. The Bank Lending Channel 4 1.1 Interest Rate and Credit Channels: a Brief Overview of Theoretical Concepts 4 1.2 Determinants of the Bank Lending Channel 6 2. A Short Description of Latvia's Banking Sector 7 2.1 Importance of the Banking Sector for Latvia's Financial System 7 2.2 Structure of Latvia's Banking Sector 8 3. Discovering Asymmetries in Bank Lending Behaviour 12 3...

Business Cycles, Monetary Policy, and Bank Lending: Identifying the bank balance sheet channel with firm-bank match-level loan data

This paper examines the impact of business cycles and monetary policy on bank loan supply. To this end, we use a unique firm-bank match-level dataset covering listed firms in Japan that allows us to control for firms’ time-varying unobservable loan demand and endogenous bank-firm matching, so that we can identify the effects of business cycles and monetary policy on loan supply through the bank...