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Does monetary policy lose effectiveness during a credit crunch?

Bijapur, Mohan (2010) Does monetary policy lose effectiveness during a credit crunch? Economics Letters, 106 (1). pp. 42-44. ISSN 0165-1765

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Identification Number: 10.1016/j.econlet.2009.09.020


This article investigates the effectiveness of monetary policy during a credit crunch by estimating a vector autoregression on the US economy. We present evidence that interest rate cuts have a diminished impact on growth, due to impairment in the relationship between monetary policy and the supply of intermediated credit.

Item Type: Article
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Additional Information: © 2009 Elsevier B.V.
Divisions: Economics
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HG Finance
JEL classification: E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations; Cycles
E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit
G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
Date Deposited: 01 May 2014 09:10
Last Modified: 16 May 2024 01:11

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