Daniel L. Thornton ~ Financial Innovation, Deregula- Tion and the " Credit View " of Monetary Policy
نویسنده
چکیده
Two distinct credit channels for monetary policy have been described.’ Both of these channels are based on lending problems associated with asymmetric information and control.2 The cost of acquiring information and controlling borrower’s behavior drives a wedge between the cost of internal and external finance. For some borrowers the premium for external finance is so large that it is impractical for them to obtain funds in impersonal financial markets. Depository financial intermediaries (hereafter, banks), reduce the wedge by specializing in acquiring information about and assessing the risk characteristics of such borrowers.’
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