search query: @indexterm MONEY SUPPLY / total: 177
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| Author: | Morgan, D. P. |
| Title: | The credit effects of monetary policy: Evidence using loan commitments. |
| Journal: | Journal of Money, Credit and Banking
1998 : FEB, VOL.30:1, p. 102-118 |
| Index terms: | Monetary policy Financial policy Central banks Commercial banks Money supply USA |
| Language: | eng |
| Abstract: | The author states that monetary policy may affect spending by changing the supply of bank loans and the creditworthness of borrowers. He tests for these credit effects using a contractual difference across commercial bank loans. He finds that bank loans not made under a commitment slow after tight policy, while loans under commitment accelerate or are unchanged. This divergence coincides with reports of tighter credit by lenders and by small firms, suggesting the divergence reflects a reduction in the supply of credit to the firms without commitments, rather than reduction in their demand for loans. |
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