State-dependent monetary policy transmission and financial market tensions
Is monetary policy more powerful when strains in the financial system are high? Applying local projections to US time series, I approach this question by allowing monetary policy shocks and its propagation to the broader economy to smoothly vary according to a measure of financial market tensions—th...
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| Dokumenttyp: | Article (Journal) |
| Sprache: | Englisch |
| Veröffentlicht: |
26May2017
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| In: |
Economics letters
Year: 2017, Jahrgang: 157, Pages: 56-61 |
| ISSN: | 0165-1765 |
| DOI: | 10.1016/j.econlet.2017.05.008 |
| Online-Zugang: | Verlag, lizenzpflichtig, Volltext: https://doi.org/10.1016/j.econlet.2017.05.008 Verlag, lizenzpflichtig, Volltext: https://www.sciencedirect.com/science/article/pii/S0165176517301866 
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| Verfasserangaben: | Sebastian K. Rüth |
| Zusammenfassung: | Is monetary policy more powerful when strains in the financial system are high? Applying local projections to US time series, I approach this question by allowing monetary policy shocks and its propagation to the broader economy to smoothly vary according to a measure of financial market tensions—the so-called excess bond premium (EBP). I find that monetary policy impacts macroeconomic, housing, and financial variables stronger and more persistently when financial frictions are high. |
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| Beschreibung: | Gesehen am 01.03.2021 |
| Beschreibung: | Online Resource |
| ISSN: | 0165-1765 |
| DOI: | 10.1016/j.econlet.2017.05.008 |