Corporate finance and the monetary transmission mechanism
Mostra el registre complet Registre parcial de l'ítem
- dc.contributor.author Bolton, Patrick
- dc.contributor.author Freixas, Xavier
- dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
- dc.date.accessioned 2020-05-25T09:27:01Z
- dc.date.available 2020-05-25T09:27:01Z
- dc.date.issued 2000-06-01
- dc.date.modified 2020-05-25T09:18:49Z
- dc.description.abstract This paper analyzes the transmission mechanisms of monetary policy in a general equilibrium model of securities markets and banking with asymmetric information. Banks' optimal asset/liability policy is such that in equilibrium capital adequacy constraints are always binding. Asymmetric information about banks' net worth adds a cost to outside equity capital, which limits the extent to which banks can relax their capital constraint. In this context monetary policy does not affect bank lending through changes in bank liquidity. Rather, it has the effect of changing the aggregate composition of financing by firms. The model also produces multiple equilibria, one of which displays all the features of a "credit crunch". Thus, monetary policy can also have large effects when it induces a shift from one equilibrium to the other.
- dc.format.mimetype application/pdf*
- dc.identifier https://econ-papers.upf.edu/ca/paper.php?id=511
- dc.identifier.citation Review of Financial Studies, 19: 829 - 870, Fall 2006
- dc.identifier.uri http://hdl.handle.net/10230/704
- dc.language.iso eng
- dc.relation.ispartofseries Economics and Business Working Papers Series; 511
- dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
- dc.rights.accessRights info:eu-repo/semantics/openAccess
- dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
- dc.subject.keyword asymmetric information
- dc.subject.keyword liabilities structure
- dc.subject.keyword capital regulation
- dc.subject.keyword monetary policy
- dc.subject.keyword transmission mechanism
- dc.subject.keyword Finance and Accounting
- dc.title Corporate finance and the monetary transmission mechanism
- dc.type info:eu-repo/semantics/workingPaper