Banks’ Supply of Loans

Kay Mitusch & Dieter Nautz
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...
This data repository is not currently reporting usage information. For information on how your repository can submit usage information, please see our documentation.