Banks and Monetary Shocks in Emerging Markets : How Far Can We Go with the "Credit View"?

This paper examines the propagation of monetary shocks in a two-good optimizing macromodel where domestic banking activity is costly and the non-tradable sector is highly dependent on domestic bank credit, as in most emerging market economies. The model develops the Bernanke-Blinder "credit view" of the monetary transmission mechanism along classical lines, with no Keynesian rigidities being imposed and the only sources of "imperfection" arising from deposit and credit-in-advance constraints. Using numerical simulations, we show that such a relatively simple model goes a long way toward explaining some key "stylized facts" of recent financial crises.
Publication date: March 2000
ISBN: 9781451848984
$15.00
Add to Cart by clicking price of the language and format you'd like to purchase
Available Languages and Formats
English
Prices in red indicate formats that are not yet available but are forthcoming.
Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Banks and Banking , Banks and Banking , Finance , Finance , interest rate spreads , banking , bond , reserve requirements , bank deposits

Summary