Is bank lending important for the transmission of monetary policy? An overview

Joe Peek and Eric Rosengren ()

New England Economic Review, 1995, issue Nov, 3-11

Abstract: To improve our understanding of the role of banks in the transmission of monetary policy, the Federal Reserve Bank of Boston convened a conference in June of 1995 to consider the question, \"Is Bank Lending Important for the Transmission of Monetary Policy?\" That banks are an important element in the transmission process is not an issue, because monetary policy operates through the banking sector. However, the description of the exact role played by banks remains hotly disputed, with the debate focusing on the importance of the role for bank lending as a transmission channel (the lending view) distinct from the generally accepted channel operating through interest rates (the money view).> Bankers, economists, and other financial specialists met to discuss whether bank lending should be considered an important component of the transmission of monetary policy. Proponents argued that changes in bank assets as well as bank liabilities influence the future course of the economy. Many economists remain skeptical of the role of banks, however, believing that a focus on interest rates or money aggregates is sufficient for understanding the transmission of monetary policy. This article presents an overview of the papers presented at the conference and the comments of their discussants.

Keywords: Bank loans; Monetary policy (search for similar items in EconPapers)
Date: 1995
References: Add references at CitEc
Citations: View citations in EconPapers (60)

Downloads: (external link)
http://www.bostonfed.org/economic/neer/neer1995/neer695a.htm (text/html)
http://www.bostonfed.org/economic/neer/neer1995/neer695a.pdf (application/pdf)

Related works:
Journal Article: Is bank lending important for the transmission of monetary policy: an overview (1995)
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:fip:fedbne:y:1995:i:nov:p:3-11

Ordering information: This journal article can be ordered from

Access Statistics for this article

More articles in New England Economic Review from Federal Reserve Bank of Boston Contact information at EDIRC.
Bibliographic data for series maintained by Catherine Spozio ().