Aysun, Uluc; Brady, Ryan R.; Honig, Adam - Department of Economics, College of Business Administration - 2011
This paper examines the effect of financial frictions on the strength of the credit channel of monetary transmission …. We first use a DSGE model characterized by financial frictions as in Bernanke, Gertler, and Gilchrist (1999), and … calibrate it using parameter values for countries with different levels of financial frictions. We find that the credit channel …