1 option
Bank Market Power and Monetary Policy Transmission: Evidence from a Structural Estimation / Yifei Wang, Toni M. Whited, Yufeng Wu, Kairong Xiao.
- Format:
- Book
- Author/Creator:
- Wang, Yifei.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w27258.
- NBER working paper series no. w27258
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2020.
- Summary:
- We quantify the impact of bank market power on monetary policy transmission through banks to borrowers. We estimate a dynamic banking model in which monetary policy affects imperfectly competitive banks' funding costs. Banks optimize the pass-through of these costs to borrowers and depositors, while facing capital and reserve regulation. We find that bank market power explains much of the transmission of monetary policy to borrowers, with an effect comparable to that of bank capital regulation. When the federal funds rate falls below 0.9%, market power interacts with bank capital regulation to produce a reversal of the effect of monetary policy.
- Notes:
- Print version record
- May 2020.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.