Read Bank Lending and Interest Rate Changes in a Dynamic Matching Model

Bank Lending and Interest Rate Changes in a Dynamic Matching Model

Giovanni Dell'ariccia

4.9/5 (30703 ratings)

Description:In a world with asymmetric information and other market imperfections, financial intermediaries provide credit to otherwise liquidity constrained agents. If lending without screening and monitoring entails large deadweight losses, and if market financing is prevented by free-rider problems, banks emerge as the only source of external financing for potentially productive agents (Diamond, 1984).1 As a result, the relationship between monetary perturbations and aggregate economic activity is necessarily linked to bank lending behavior.2 However, the response of bank lending to positive and negative interest rate changes may be inherently different, and potentially asymmetric. Even though several papers have studied the asymmetric effects of monetary policy on real economic activity, little attention has been paid to the asymmetric response of bank lending to interest rate changes.3We have made it easy for you to find a PDF Ebooks without any digging. And by having access to our ebooks online or by storing it on your computer, you have convenient answers with Bank Lending and Interest Rate Changes in a Dynamic Matching Model. To get started finding Bank Lending and Interest Rate Changes in a Dynamic Matching Model, you are right to find our website which has a comprehensive collection of manuals listed.
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Pages: 47

Format: PDF, EPUB & Kindle Edition

Publisher: Not Avail

Release: 1998

ISBN: 6613883573

Description: In a world with asymmetric information and other market imperfections, financial intermediaries provide credit to otherwise liquidity constrained agents. If lending without screening and monitoring entails large deadweight losses, and if market financing is prevented by free-rider problems, banks emerge as the only source of external financing for potentially productive agents (Diamond, 1984).1 As a result, the relationship between monetary perturbations and aggregate economic activity is necessarily linked to bank lending behavior.2 However, the response of bank lending to positive and negative interest rate changes may be inherently different, and potentially asymmetric. Even though several papers have studied the asymmetric effects of monetary policy on real economic activity, little attention has been paid to the asymmetric response of bank lending to interest rate changes.3We have made it easy for you to find a PDF Ebooks without any digging. And by having access to our ebooks online or by storing it on your computer, you have convenient answers with Bank Lending and Interest Rate Changes in a Dynamic Matching Model. To get started finding Bank Lending and Interest Rate Changes in a Dynamic Matching Model, you are right to find our website which has a comprehensive collection of manuals listed.
Our library is the biggest of these that have literally hundreds of thousands of different products represented.

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Bank Lending and Interest Rate Changes in a Dynamic Matching Model

Bank Lending and Interest Rate Changes in a Dynamic Matching Model

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