Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/22364
Full metadata record
DC FieldValueLanguage
dc.contributor.authorWollmershäuser, Timoen_US
dc.contributor.authorMayer, Ericen_US
dc.contributor.authorHülsewig, Oliveren_US
dc.date.accessioned2009-01-29T14:57:32Z-
dc.date.available2009-01-29T14:57:32Z-
dc.date.issued2006en_US
dc.identifier.urihttp://hdl.handle.net/10419/22364-
dc.description.abstractThis paper presents a New Keynesian model that dwells on the roleof banks in the cost channel of monetary policy. Banks extend loans tofirms in an environment of monopolistic competition by setting the loanrate according to a Calvo-type staggered price setting approach, whichmeans that the adjustment of the aggregate loan rate to a monetary policyshock is sticky. We estimate the model for the Euro area by adopting aminimum distance approach. Our findings exhibit that, first, frictions onthe loan market influence the propagation of monetary policy shocks asthe pass-through of a change in the money market rate to the loan rateis incomplete, and, second, the cost channel is operating, but the effectis weak since inflation is driven by real unit labor costs rather than theloan rate. Our main conclusion is that the strength of the cost channel ismitigated as banks shelter firms from monetary policy shocks by smoothinglending rates.en_US
dc.language.isoengen_US
dc.publisheren_US
dc.relation.ispartofseries|aWürzburg economic papers |x71en_US
dc.subject.jelE44en_US
dc.subject.jelE52en_US
dc.subject.jelE58en_US
dc.subject.ddc330en_US
dc.subject.keywordBank behavioren_US
dc.subject.keywordcost channelen_US
dc.subject.keywordminimum distance estimationen_US
dc.titleBank Behavior and the Cost Channel of Monetary Transmissionen_US
dc.typeWorking Paperen_US
dc.identifier.ppn518906183en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:wuewep:71-

Files in This Item:
File
Size
455.95 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.