Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/60788
Authors: 
Adrian, Tobias
Shin, Hyun Song
Year of Publication: 
2009
Series/Report no.: 
Staff Report, Federal Reserve Bank of New York 360
Abstract: 
In a market-based financial system, banking and capital market developments are inseparable, and funding conditions are closely tied to fluctuations in the leverage of market-based financial intermediaries. Offering a window on liquidity, the balance sheet growth of broker-dealers provides a sense of the availability of credit. Contractions of broker-dealer balance sheets have tended to precede declines in real economic growth, even before the current turmoil. For this reason, balance sheet quantities of market-based financial intermediaries are important macroeconomic state variables for the conduct of monetary policy.
Subjects: 
Credit crisis
monetary policy
JEL: 
G24
E50
Document Type: 
Working Paper

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