Bank-Lending Standards, the Cost Channel and Inflation Dynamics

If firms borrow working capital to finance production, then nominal interest rates have a direct influence on in 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 in ation dynamics in the US and in the euro area.

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Year of publication:	2010-09-08
Authors:	Kaufmann, Sylvia ; Scharler, Johann
Institutions:	Oesterreichische Nationalbank
Subject:	New Keynesian Phillips Curve \| Cost Channel \| Bank Lending Standards \| Bayesian

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	The price is Free subject to availability 3 pages long
Classification:	E40 - Money and Interest Rates. General ; E50 - Monetary Policy, Central Banking and the Supply of Money and Credit. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008615093