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Bank Lending and Interest Rate Changes in a Dynamic Matching Model
By:Mr. Giovanni Dell'Ariccia,Mr. Pietro Garibaldi
Published on 1998-06-01 by International Monetary Fund

This paper presents theory and evidence on the dynamic relationship between aggregate bank lending and interest rate changes. Theoretically, it proposes and solves a stochastic matching model where credit expansion and contraction are time consuming. It shows that the response of bank lending to changes in money market rates is likely to be asymmetric and depends crucially on two structural parameters: the speed at which new loans become available, and the speed at which banks recall existing loans. Empirically, it provides evidence that bank lending in Mexico and the United States responds asymmetrically to positive and negative shocks in money market rates.

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Book ID of Bank Lending and Interest Rate Changes in a Dynamic Matching Model's Books is 1uNsWP4NHjIC, Book which was written byMr. Giovanni Dell'Ariccia,Mr. Pietro Garibaldihave ETAG "b8nNm5ZT0Xo"

Book which was published by International Monetary Fund since 1998-06-01 have ISBNs, ISBN 13 Code is 9781451897470 and ISBN 10 Code is 1451897472

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Book which have "46 Pages" is Printed at BOOK under CategoryBusiness and Economics

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