Financial Systems and the Cost Channel Transmission of Monetary Policy Shocks

Sylvia Kaufmann () and Johann Scharler

Working Papers from Oesterreichische Nationalbank (Austrian Central Bank)

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)
New Economics Papers: this item is included in nep-cba, nep-fmk, nep-mac and nep-mon
Date: 2006
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Related works:
Working Paper: Financial Systems and the Cost Channel Transmission of Monetary Policy Shocks (2007)
Journal Article: Financial systems and the cost channel transmission of monetary policy shocks (2009)
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Persistent link: http://EconPapers.repec.org/RePEc:onb:oenbwp:116

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