Credit rationing and endogenous monetary policy

Enchuan Shao

Applied Economics Letters, 2010, vol. 17, issue 5, 437-443

Abstract: The implication of credit rationing models states that the effect of monetary policy on output may be stronger when credit conditions are tight than when they are loose. Therefore, there may be a threshold effect on the relation between real money supply and output. Existing empirical studies on testing threshold effects ignore the fact that the monetary policy which follows optimal rules is endogenous. This article provides a test of threshold effects when monetary policy is endogenous and finds that the US aggregate data cannot provide substantial evidence of a threshold effect on the relation between money and output.

Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.informaworld.com/openurl?genre=article& ... 40C6AD35DC6213A474B5 (text/html)
Access to full text is restricted to subscribers.

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:taf:apeclt:v:17:y:2010:i:5:p:437-443

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20

DOI: 10.1080/13504850701857858

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().