Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/37216 
Year of Publication: 
2010
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Banking and Monetary Policy No. D12-V3
Publisher: 
Verein für Socialpolitik, Frankfurt a. M.
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.
Subjects: 
New Keynesian Phillips Curve
Cost Channel
Bank Lending Standards
Bayesian Analysis
JEL: 
E40
E50
E52
Document Type: 
Conference Paper

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