Banks, credit and the transmission mechanism of monetary policy
David Marques-Ibanez ()
Research Bulletin, 2009, vol. 8, 2-4
This article highlights some key results from recent research on the role of banks in the transmission mechanism of monetary policy. This new research stresses that bank capital, securitisation and incentives for risk taking are fundamental elements in modelling banks’ ability and willingness to lend. The quantification of such effects remains challenging. Nevertheless, a key lesson from this research is that current tensions in credit markets should be expected to play a crucial role in the supply of credit to households and firms and, thus, for economic activity in the months to come. JEL Classification: E5, G2
Keywords: monetary policy; credit (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbrbu:2009:0008:1
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