Chinese Private Lending Risk and Monetary Policy Operating

Lending Relationships and Monetary Policy

Financial intermediation and bank spreads are important elements in the analysis of business cycle transmission and monetary policy. We present a simple framework that introduces lending relationships, a relevant feature of financial intermediation that has been so far neglected in the monetary economics literature, into a dynamic stochastic general equilibrium model with staggered prices and c...

Bank Lending and Monetary Policy: A Comment

Safe Assets, Collateralized Lending and Monetary Policy∗

I study how quantities of safe bonds affect asset prices and lending volumes in financial markets. In a quantitative model, heterogeneous agents trade securities of different maturity and risk exposure. Risk-tolerant investors issue collateralized bonds to obtain leverage and to insure the risk-averse. Despite the presence of higher return assets, the most risk-tolerant hold long-maturity safe ...

Interbank lending and monetary policy transmission: evidence for Germany

This paper presents empirical evidence on the behaviour of interbank lending in Germany after a monetary policy impulse. Our VAR analysis shows that following a monetary contraction, the banking system as a whole attracts additional funds from foreign banks. Whereas small cooperative and savings banks do not seem to directly access the interbank market themselves, they do so indirectly through ...

Operating Procedures for Conducting Monetary Policy

‘a-jr ‘it! V V ITHIN the Federal Reserve System, the body that determines the nation’s monetary policy is the Federal Open Market Committee (FOMC). The FOMC meets several times each year, specifying targets for the federal funds rate and money growth over the period until the next scheduled meeting.’ Twice each year, in February and July, the FOMC also announces its annual objectives for growth...