Monetary policy, credit and aggregate supply: the evidence from Italy
Riccardo Fiorentini and
Roberto Tamborini ()
General Economics and Teaching from University Library of Munich, Germany
This paper relates to the macroeconomic and monetary policy aspects of the so-called "credit channel" of monetary transmission. We present an intertemporal macroeconomic equilibrium model of a competitive economy where current production is financed by bank credit, and then we use it to identify the credit transmission mechanism in data drawn from the Italian economy. We find evidence that the "credit variables" identified by the model, the overnight rate and a measure of credit risk, have permanent effects on employment and output through the supply side of the economy by altering credit supply conditions to firms.
Keywords: Monetary policy; Credit; Italian economy (search for similar items in EconPapers)
JEL-codes: E2 E5 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mon
Note: Type of Document - Word97; prepared on IBM PC; to print on HP Laserjet; pages: 55; figures: included
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Journal Article: Monetary Policy, Credit and Aggregate Supply: The Evidence from Italy (2002)
Working Paper: Monetary policy, credit and aggregate supply: the evidence from Italy (1998)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpgt:0004008
Access Statistics for this paper
More papers in General Economics and Teaching from University Library of Munich, Germany
Bibliographic data for series maintained by EconWPA ().