Working Paper: NBER ID: w4317
Authors: Anil K. Kashyap; Jeremy C. Stein
Abstract: This paper surveys recent work that relates to the "lending" view of monetary policy transmission. It has three main goals: 1) to explain why it is important to distinguish between the lending and "money" views of policy transmission; 2) to outline the microeconomic conditions that are needed to generate a lending channel; and 3) to review the empirical evidence that bears on the lending view.
Keywords: Monetary Policy; Bank Lending; Lending Channel
JEL Codes: E52; G21
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Monetary policy (via reserves) (E52) | Bank lending (G21) |
| Bank lending (G21) | Investment decisions by firms (G31) |
| Decrease in reserves (E52) | Bank lending (G21) |
| Bank lending (G21) | Real economic activity (E39) |
| Monetary policy (E52) | Real economic activity (E39) |