Arbeitspapier

Banks' supply of loans: When future monetary policy is uncertain

The most important policy instruments of the Bundesbank and of the coming European Central Bank involve lending to domestic credit institutions. In this monetary setup, banks use short-term central bank credits extensively in order to refinance long-term loans to the public, which makes them vulnerable to sudden monetary policy changes. We develop a loan supply model that captures distinguishing features of the European money supply process and show how money supply responds when future monetary policy is expected to become tighter or more uncertain. The results indicate that the controllability of borrowed reserves is of crucial importance for monetary policy practice.

Sprache
Englisch

Erschienen in
Series: SFB 373 Discussion Paper ; No. 1998,30

Klassifikation
Wirtschaft
Money Supply; Credit; Money Multipliers
Monetary Policy
Thema
Loan and money supply
central bank lending
monetary policy instruments of the ECB
interest rate risk

Ereignis
Geistige Schöpfung
(wer)
Mitusch, Kay
Nautz, Dieter
Ereignis
Veröffentlichung
(wer)
Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes
(wo)
Berlin
(wann)
1998

Handle
URN
urn:nbn:de:kobv:11-10056748
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Mitusch, Kay
  • Nautz, Dieter
  • Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes

Entstanden

  • 1998

Ähnliche Objekte (12)