IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Monetary Policy and the Credit Channel, Broad and Narrow

  • Torben W Hendricks

    (University of Duisburg-Essen, Universitaetsstr. 12, Essen 45117, Germany)

  • Bernd Kempa

    (University of Muenster, Universitaetsstr. 14–16, Muenster 48143, Germany)

Two variants of the credit channel of monetary policy transmission can be distinguished: a narrow bank lending channel, measured in terms of the supply of bank loans, and a broad credit channel focusing on the external finance premium in credit markets. In this paper, both variants of the credit channel are identified by applying Markov-switching models on US bank lending and interest rate data. We find the credit channel to be particularly potent during periods of financial distress, such as during 1980s Savings and Loan debacle, the period following the bursting of the internet bubble in the early 2000s, or the financial crisis that started in the sub-prime segment of the US real estate market in 2007.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.palgrave-journals.com/eej/journal/v37/n3/pdf/eej200951a.pdf
File Function: Link to full text PDF
Download Restriction: Access to full text is restricted to subscribers.

File URL: http://www.palgrave-journals.com/eej/journal/v37/n3/full/eej200951a.html
File Function: Link to full text HTML
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Palgrave Macmillan in its journal Eastern Economic Journal.

Volume (Year): 37 (2011)
Issue (Month): 3 ()
Pages: 403-416

as
in new window

Handle: RePEc:pal:easeco:v:37:y:2011:i:3:p:403-416
Contact details of provider: Web page: http://www.palgrave-journals.com/

Order Information: Postal: Palgrave Macmillan Journals, Subscription Department, Houndmills, Basingstoke, Hampshire RG21 6XS, UK
Web: http://www.palgrave-journals.com/pal/subscribe/index.html Email:


No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:pal:easeco:v:37:y:2011:i:3:p:403-416. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Daniel Foley)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.