Abstract
The lending channel is conventionally understood to transmit monetary policy through new loans. We postulate that the lending channel may also operate via the stock of existing loans. In this context, this paper documents a wide diversity in borrowers’ features, loan features and price developments across euro area Member States. Better understanding the individual and combined implications of these features is of the outmost importance for being able to conduct an effective monetary policy in the euro area. Significant differences in these factors across euro area Member States can distort a homogeneous transmission of the single monetary policy.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
