Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73588
Authors: 
Kaufmann, Sylvia
Scharler, Johann
Year of Publication: 
2009
Series/Report no.: 
Working Paper, Department of Economics, Johannes Kepler University of Linz 0916
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
Document Type: 
Working Paper

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