Ανάρτηση Ερευνητικού Δοκιμίου no 09/25

Ερευνητικό Δοκίμιο no 09/25 με τίτλο "Financial Intermediation, Investment, and Monetary Policy"

των Ι. Κοσπεντάρη και  Florian Madison

Περίληψη

We develop a search-theoretic monetary general equilibrium model in which the  effective lower bound (ELB) on nominal interest rates arises endogenously from the  interaction between banks and credit-dependent firms. A wedge between deposit and  lending rates, driven by the financial market microstructure and firm characteristics,  limits credit expansion as policy rates decline. The ELB– a nominal rate below which monetary easing fails to stimulate output or investment– is higher when bank market power is greater or firms face tighter borrowing constraints, highlighting the role of financial conditions for monetary policy transmission. Our findings- theoretical and quantitative– underscore the importance of financial intermediaries in shaping the  ELB and support a complementary role for macroprudential regulation and standard monetary policy tools.

Ο  Ιωάννης Κοσπεντάρης είναι Επίκουρος Καθηγητής στο τμήμα Οικονομικής Επιστήμης του Οικονομικού Πανεπιστημίου Αθηνών και ο Florian Madison είναι Assistant Professor στο Robert Day School of Economics and Finance, Claremont McKenna College.