01779cas a2200253 a 4500 AALejournalIMF000657 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451951318 1018-5941 BD-DhAAL BD-DhAAL Dell'Ariccia, Giovanni. Bank Lending and Interest Rate Changes in a Dynamic Matching Model / Giovanni Dell'Ariccia, Pietro Garibaldi. Washington, D.C. : International Monetary Fund, 1998. 1 online resource (46 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper presents theory and evidence on the dynamic relationship between aggregate bank lending and interest rate changes. Theoretically, it proposes and solves a stochastic matching model where credit expansion and contraction are time consuming. It shows that the response of bank lending to changes in money market rates is likely to be asymmetric and depends crucially on two structural parameters: the speed at which new loans become available, and the speed at which banks recall existing loans. Empirically, it provides evidence that bank lending in Mexico and the United States responds asymmetrically to positive and negative shocks in money market rates. Mode of access: Internet Garibaldi, Pietro. IMF Working Papers; Working Paper ; No. 1998/093 Full text available on IMF http://elibrary.imf.org/view/journals/001/1998/093/001.1998.issue-093-en.xml IMF e-Library