Financial Intermediation and Monetary Policies in the World Economy / Vittorio Grilli, Nouriel Roubini.

Format:

Book

Author/Creator:

Grilli, Vittorio.

Contributor:

National Bureau of Economic Research.

Roubini, Nouriel.

Series:

Technical Working Paper Series (National Bureau of Economic Research) no. t0104.

NBER technical working paper series no. t0104

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1991.

Summary:

In this paper we investigate the role of credit institutions in transmitting monetary shocks to the domestic economy and to the rest of the world output. In modeling the monetary and financial sector of the economy we distinguish between monetary injections via lump-sum transfers to individuals and those via increased credit to the commercial banking sector in the form of discount window operations. Appropriately, we distinguish between the discount rate of the central bank and the lending and borrowing interest rates of commercial banks, which, we assume, are also subject to reserves requirements. We find that a steady state increase in monetary injections via increases in domestic credit leads to an increase in domestic output. On the other hand, we find that an increase in the steady state level of monetary transfers reduces the level of output.

Notes:

Print version record

May 1991.