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Monetary Policy and Bank Lending

In: Monetary Policy

  • Anil K. Kashyap
  • Jeremy C. Stein

This paper surveys recent work that relates to the "lending" view of monetary policy transmission. It has three main goals: 1) to explain why it is important to distinguish between the lending and "money" views of policy transmission; 2) to outline the microeconomic conditions that are needed to generate a lending channel; and 3) to review the empirical evidence that bears on the lending view.

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This chapter was published in:
  • N. Gregory Mankiw, 1994. "Monetary Policy," NBER Books, National Bureau of Economic Research, Inc, number greg94-1, March.
  • This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number 8334.
    Handle: RePEc:nbr:nberch:8334
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