Christiano, Lawrence J.; Eichenbaum, Martin; Evans, … - 2022
This paper uses the Flow of Funds accounts to assess the impact of a monetary policy shock on the borrowing and lending … government securities and a rise in the federal funds rate, (ii) they lead to persistent declines in real GNP, employment, retail … sectors can be summarized as follows. First, following a contractionary shock to monetary policy, net funds raised by the …