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Bank Loans and the Transmission Mechanism of Monetary Policy

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  • Hallsten, Kerstin

    () (Monetary Policy Department, Central Bank of Sweden)

Abstract

How monetary policy affects the economy is a central topic of debate in macroeconomics. The bank lending channel is one approach that emphasises the role of banks. Banks are important because of asymmetric information in the financial market. Banks are assumed to be better at handling information problems than other lenders. In this paper it is analysed how monetary policy works when there is a bank lending channel and then it is tested for the importance of this channel using Swedish data.

Suggested Citation

  • Hallsten, Kerstin, 1998. "Bank Loans and the Transmission Mechanism of Monetary Policy," Working Paper Series 73, Sveriges Riksbank (Central Bank of Sweden).
  • Handle: RePEc:hhs:rbnkwp:0073
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    Cited by:

    1. de Mendonça, Helder Ferreira & Tiberto, Bruno Pires, 2014. "Public debt and social security: Level of formality matters," Economic Modelling, Elsevier, pages 490-507.
    2. Igor Da Silva Veiga & Helder Ferreira De Mendonça, 2014. "Financial Openness And Inflationtargeting: An Analysis For The Unpleasant Fiscal Arithmetic," Anais do XL Encontro Nacional de Economia [Proceedings of the 40th Brazilian Economics Meeting] 059, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
    3. Raditya Sukmana, 2010. "Roles of the Islamic banks in the monetary transmission process in Malaysia," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing, vol. 3(1), pages 7-19, April.
    4. Carlos Henrique L. Corseuil & Marcelo Côrtes Neri & Gabriel Ulyssea, 2014. "Uma Análise Exploratória dos Efeitos da Política de Formalização dos Microempreendedores Individuais," Discussion Papers 1939, Instituto de Pesquisa Econômica Aplicada - IPEA.
    5. Stephanos Papadamou & Costas Siriopoulos, 2012. "Banks’ lending behavior and monetary policy: evidence from Sweden," Review of Quantitative Finance and Accounting, Springer, pages 131-148.
    6. Westerlund, Joakim, 2003. "A Panel Data Test of the Bank Lending Channel in Sweden," Working Papers 2003:16, Lund University, Department of Economics.
    7. de Mendonça, Helder Ferreira & da Silva Veiga, Igor, 2014. "A Note On Openness And Inflation Targeting: Implications For The Unpleasant Fiscal Arithmetic," Macroeconomic Dynamics, Cambridge University Press, pages 1187-1207.
    8. Auel, Matias Carlos & de Mendonça, Helder Ferreira, 2011. "Macroeconomic relevance of credit channels: Evidence from an emerging economy under inflation targeting," Economic Modelling, Elsevier, pages 965-979.

    More about this item

    Keywords

    Bank loans; Transmission mechanism; Monetary policy;

    JEL classification:

    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General

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