EconPapers    
Economics at your fingertips  
 

Monetary policy and market power in banking

Linda A. Toolsema
Additional contact information
Linda A. Toolsema: Groningen University

No 200303, CCSO Working Papers from University of Groningen, CCSO Centre for Economic Research

Abstract: Applying a spatial competition model to banking, we analyze the effects of the choice of a monetary policy rule by the central bank on banks' market power as measured by the Lerner index. We show that a procyclical monetary policy may reinforce the countercyclical movement of the Lerner index. That is, this measure of competitiveness of the banking sector may vary more over the business cycle due to the monetary policy rule.

Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://irs.ub.rug.nl/ppn/244576440 (application/pdf)

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:gro:rugccs:200303

Access Statistics for this paper

More papers in CCSO Working Papers from University of Groningen, CCSO Centre for Economic Research Contact information at EDIRC.
Series data maintained by Hanneke Tamling ().

 
Page updated 2017-10-18
Handle: RePEc:gro:rugccs:200303