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The Impact of Monetary Policy on Bank Balance Sheets

Listed author(s):
  • Anil K Kashyap
  • Jeremy C. Stein

This paper uses disaggregated data on bank balance sheets to provide a test of the lending view of monetary policy transmission. We argue that if the lending view is correct, one should expect the loan and security portfolios of large and small banks to respond differentially to a contraction in monetary policy. We first develop this point with a theoretical model; we then test to see if the model's predictions are borne out in the data.

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File URL: http://www.nber.org/papers/w4821.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 4821.

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Date of creation: Aug 1994
Publication status: published as Carnegie-Rochester Conference Series on Public Policy, 42, 1995, pp. 151-19 5.
Handle: RePEc:nbr:nberwo:4821
Note: CF ME
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