Financial Systems and the Cost Channel Transmission of Monetary Policy Shocks

Johann Scharler and Sylvia Kaufmann
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Johann Scharler: Oesterreichische Nationalbank

No 67, Money Macro and Finance (MMF) Research Group Conference 2006 from Money Macro and Finance Research Group

Abstract: In this paper we study the role of financial systems for the cost channel transmission of monetary policy in a calibrated business cycle model. We analyze the different effects that monetary policy has on the economy, in particular on output and inflation, which are due to differences in country-specific financial systems. For a plausible calibration of the model, differences in financial systems have a rather limited effect on the transmission mechanism and do not appear to give rise to cross country differences in the strength of the cost channel

Keywords: Financial Systems; Cost Channel; Transmission Mechanism (search for similar items in EconPapers)
JEL-codes: E40 E50 (search for similar items in EconPapers)
Date: 2007-02-02
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
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Citations: View citations in EconPapers (1)

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http://repec.org/mmf2006/up.9513.1145363357.pdf (application/pdf)

Related works:
Journal Article: Financial systems and the cost channel transmission of monetary policy shocks (2009)
Working Paper: Financial Systems and the Cost Channel Transmission of Monetary Policy Shocks (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:mmf:mmfc06:67

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