Menu Expand

Cite JOURNAL ARTICLE

Style

Guender, A., Moersch, M. On the Existence of a Credit Channel of Monetary Policy in Germany. Credit and Capital Markets – Kredit und Kapital, 30(2), 173-185. https://doi.org/10.3790/ccm.30.2.173
Guender, Alfred and Moersch, Mathias "On the Existence of a Credit Channel of Monetary Policy in Germany" Credit and Capital Markets – Kredit und Kapital 30.2, 1997, 173-185. https://doi.org/10.3790/ccm.30.2.173
Guender, Alfred/Moersch, Mathias (1997): On the Existence of a Credit Channel of Monetary Policy in Germany, in: Credit and Capital Markets – Kredit und Kapital, vol. 30, iss. 2, 173-185, [online] https://doi.org/10.3790/ccm.30.2.173

Format

On the Existence of a Credit Channel of Monetary Policy in Germany

Guender, Alfred | Moersch, Mathias

Credit and Capital Markets – Kredit und Kapital, Vol. 30 (1997), Iss. 2 : pp. 173–185

Additional Information

Article Details

Author Details

Alfred Guender, Christchurch and Frankfurt/Main

Mathias Moersch, Christchurch and Frankfurt/Main

References

  1. Bernanke, B. and A. Blinder (1992), "The Federal Funds Rate and the Channels of Monetary Transmission," American Economic Review, 901 - 922.  Google Scholar
  2. Bernanke, B., M. Gertler and S. Gilchrist (1996), "The Financial Accelerator and the Flight to Quality," Review of Economics and Statistics, 1-15.  Google Scholar
  3. Bockelmann, H. (1996), "Unterschiede in den nationalen Finanzstrukturen und ihre makroökonomische Bedeutung," in D. Duwendag (ed.) Finanzmärkte, Finanzinnovationen und Geldpolitik, Schriften des Vereins für Socialpolitik N.F. Bd. 242. Duncker & Humblot, 11 - 39.  Google Scholar
  4. Cecchetti, S. (1995), "Distinguishing Theories of the Monetary Transmission Mechanism," Federal Reserve Bank of St. Louis Review, May/June, 83 - 97.  Google Scholar
  5. Dale, S. and A. G. Haldane (1995), "Interest Rates and the Channels of Monetary Transmission: Some Sectoral Estimates," European Economic Review, 1611-1626.  Google Scholar

Abstract

On the Existence of a Credit Channel of Monetary Policy in Germany

This paper analyzes the credit channel of monetary policy in Germany. It finds little evidence for the existence of a credit channel, while confirming the standard channel of monetary transmission which works through bank liabilities. The findings suggest that, first, monetary policy shocks are largely transmitted through bank liabilities rather than assets. Second, after a policy tightening loans as a share of overall assets increase temporarily. The absence of a credit channel is consistent with a strong Hausbank relationship, in which banks insulate loan portfolios from monetary policy shocks.