EconPapers    
Economics at your fingertips  
 

Financial Constraints, Aggregate Supply, and the Monetary Transmission Mechanism

Domenico Delli Gatti () and Mauro Gallegati ()

The Manchester School of Economic & Social Studies, 1997, vol. 65, issue 2, 101-26

Abstract: The authors derive two propositions identifying the conditions for monetary policy effectiveness due to the interaction of real and financial markets. The first proposition shows that, in a regime of endogenous money, monetary policy is effective even if policy moves are anticipated because changes in the interest rate impinge upon long-run output. The second proposition shows that in a regime of exogenous money--in which the Central Bank controls base money and structural parameters affecting the behavior of banks--monetary policy affects output if its impact on money is different from its impact on credit. Copyright 1997 by Blackwell Publishers Ltd and The Victoria University of Manchester

Date: 1997
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

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:bla:manch2:v:65:y:1997:i:2:p:101-26

Access Statistics for this article

More articles in The Manchester School of Economic & Social Studies from University of Manchester Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2019-04-11
Handle: RePEc:bla:manch2:v:65:y:1997:i:2:p:101-26