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Monetary Policy and Bank Lending

  • Anil 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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File URL: http://www.nber.org/papers/w4317.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 4317.

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Date of creation: Apr 1993
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Publication status: published as Monetary Policy, ed. N. Gregory Mankiw, University of Chicago Press, 1994
Handle: RePEc:nbr:nberwo:4317
Note: ME
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  29. Ben S. Bernanke, 1986. "Alternative Explanations of the Money-Income Correlation," NBER Working Papers 1842, National Bureau of Economic Research, Inc.
  30. Lummer, Scott L. & McConnell, John J., 1989. "Further evidence on the bank lending process and the capital-market response to bank loan agreements," Journal of Financial Economics, Elsevier, vol. 25(1), pages 99-122, November.
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  39. James Tobin, 1987. "Financial Intermediaries," Cowles Foundation Discussion Papers 817, Cowles Foundation for Research in Economics, Yale University.
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