Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/152547 
Year of Publication: 
2002
Series/Report no.: 
ECB Working Paper No. 113
Publisher: 
European Central Bank (ECB), Frankfurt a. M.
Abstract: 
This paper provides a brief survey of the role of financial frictions in the monetary transmission mechanism. After noting some of the key stylised facts that any model of the transmission mechanisms must be consistent with, we discuss both the classical interest rate channel and the credit and bank lending channels of monetary transmission. We then review the empirical evidence relating to the relative importance of these channels. Finally we consider what impact the presence of significant financial frictions might have on the conduct of monetary policy
Subjects: 
bank-lending channel
credit channel
monetary policy
transmission mechanism
JEL: 
E52
E58
E44
Document Type: 
Working Paper

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