Arbeitspapier
State dependence of monetary policy across business, credit and interest rate cycles
We investigate how the business, credit and interest rate cycles affect the monetary transmission mechanism, using state-dependent local projection methods and data from 18 advanced economies. We exploit the time-series variation within countries, as well as cross-sectional variation across countries, to investigate this issue. We find that the impact of monetary policy shocks on output and most other macroeconomic and financial variables is smaller during periods of economic downturns, high household debt, and high interest rates. We then build a small-scale theoretical model to rationalize these facts. The model highlights the presence of collateral and debt-service constraints on household borrowing and refinancing as a potential cause for state dependence in monetary policy with respect to the business, credit, and interest rate cycles.
- ISBN
-
978-952-323-290-7
- Sprache
-
Englisch
- Erschienen in
-
Series: Bank of Finland Research Discussion Papers ; No. 16/2019
- Klassifikation
-
Wirtschaft
Macroeconomics: Consumption; Saving; Wealth
Business Fluctuations; Cycles
Monetary Policy
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Alpanda, Sami
Granziera, Eleonora
Zubairy, Sarah
- Ereignis
-
Veröffentlichung
- (wer)
-
Bank of Finland
- (wo)
-
Helsinki
- (wann)
-
2019
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Alpanda, Sami
- Granziera, Eleonora
- Zubairy, Sarah
- Bank of Finland
Entstanden
- 2019
Ähnliche Objekte (12)
Expectational business cycles
One money, several cycles? Evaluation of European business cycles using model-based cluster analysis
Interest rates and business cycles in emerging economies: the role of financial frictions
Rational exuberance booms and asymmetric business cycles
Ageing, interest rates, and financial flows
A case for interest rate smoothing
Nonlinear dynamics of interest rate and inflation
Information and credit cycles: Causes and consequences of financial instability
The interest rate sensitivity of output in Finland
Two tales of the natural rate of interest
How are the key Finnish market interest rates determined?
Taxation of personal interest income in 18 OECD countries
Expectational business cycles
One money, several cycles? Evaluation of European business cycles using model-based cluster analysis
Interest rates and business cycles in emerging economies: the role of financial frictions
Rational exuberance booms and asymmetric business cycles
Ageing, interest rates, and financial flows
A case for interest rate smoothing
Nonlinear dynamics of interest rate and inflation
Information and credit cycles: Causes and consequences of financial instability
The interest rate sensitivity of output in Finland
Two tales of the natural rate of interest
How are the key Finnish market interest rates determined?
Taxation of personal interest income in 18 OECD countries
Expectational business cycles
One money, several cycles? Evaluation of European business cycles using model-based cluster analysis
Interest rates and business cycles in emerging economies: the role of financial frictions
Rational exuberance booms and asymmetric business cycles
Ageing, interest rates, and financial flows
A case for interest rate smoothing
Nonlinear dynamics of interest rate and inflation
Information and credit cycles: Causes and consequences of financial instability
The interest rate sensitivity of output in Finland
Two tales of the natural rate of interest
How are the key Finnish market interest rates determined?