Loan components and time varying effects of monetary policy shocks

Wouter J Den Haan and Steven Sumner
Authors registered in the RePEc Author Service: Wouter Denhaan ()

No 238, 2004 Meeting Papers from Society for Economic Dynamics

Abstract: This paper looks at the responses of bank loan components to a monetary tightening and compares the responses to those observed to output shocks. We find the results to be consistent with both a bank lending channel and a balance sheet channel for consumer loans. In contrast, wee find that C&I loans (and commercial paper) sharply decrease in response to output shocks but increase in response to monetary policy shocks. We argue that these results are hard to reconcile with a bank lending channel that constrains the supply of C&I loans. Instead we give reasons why the supply of C&I loans (and commercial paper) may increase during periods of high interest rates

Keywords: monetary policy; impulse response functions; credit market frictions (search for similar items in EconPapers)
JEL-codes: E44 E52 (search for similar items in EconPapers)
Date: 2004
References: Add references at CitEc
Citations: View citations in EconPapers (4)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:red:sed004:238

Access Statistics for this paper

More papers in 2004 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().