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A Mechanism for Thawing the Credit Markets

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  • Edi Karni

Abstract

This paper describes a mechanism designed to induce commercial banks to increase their willingness to extend loans in an economic environment characterized by increased uncertainty and diminished expectations. This mechanism is a new tool for the conduct of monetary policy to combat recessions.

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File URL: http://econ.jhu.edu/wp-content/uploads/pdf/papers/wp551_Karni.pdf
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Bibliographic Info

Paper provided by The Johns Hopkins University,Department of Economics in its series Economics Working Paper Archive with number 551.

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Date of creation: May 2009
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Handle: RePEc:jhu:papers:551

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