EconPapers    
Economics at your fingertips  
 

Bank-Lending Standards, the Cost Channel and Inflation Dynamics

Sylvia Kaufmann () and Johann Scharler

No 2009-16, Economics working papers from Department of Economics, Johannes Kepler University Linz, Austria

Abstract: If firms borrow working capital to finance production, then nominal interest rates have a direct influence on inflation dynamics, which appears to be the case empirically. However, interest rates may only partly mirror the cost of working capital. In this paper we explore the role of bank lending standards as a potential additional cost source and evaluate their empirical importance in explaining inflation dynamics in the US and in the euro area.

Keywords: New Keynesian Phillips Curve; Cost Channel; Bank Lending Standards; Bayesian Analysis (search for similar items in EconPapers)
JEL-codes: E40 E50 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ban, nep-cba, nep-mac and nep-mon
Date: 2009-10
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.econ.jku.at/papers/2009/wp0916.pdf (application/pdf)

Related works:
Working Paper: Bank-Lending Standards, the Cost Channel and Inflation Dynamics (2010) Downloads
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:jku:econwp:2009_16

Access Statistics for this paper

More papers in Economics working papers from Department of Economics, Johannes Kepler University Linz, Austria Contact information at EDIRC.
Bibliographic data for series maintained by René Böheim ().

 
Page updated 2019-11-16
Handle: RePEc:jku:econwp:2009_16