Monetary Policy with a touch of Basel /

The typical portrait of monetary policy has the banks and the money supply being manipulated through changes in bank reserves. However, with only a small portion of bank deposits now subject to reserve requirements, an alternative explanation of how monetary policy influences banks is needed. Over t...

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Autor principal: Chami, Ralph
Altres autors: Cosimano, Thomas
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 2001.
Col·lecció:IMF Working Papers; Working Paper ; No. 2001/151
Accés en línia:Full text available on IMF
Descripció
Sumari:The typical portrait of monetary policy has the banks and the money supply being manipulated through changes in bank reserves. However, with only a small portion of bank deposits now subject to reserve requirements, an alternative explanation of how monetary policy influences banks is needed. Over the last decade, capital requirements have effectively replaced reserve requirements as the main constraint on the behavior of banks. This paper explores the implications of Basel capital requirements for monetary policy. In particular, we identify a "bank balance-sheet channel" of monetary policy, which operates through the impact on the money stock and the economy.
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Descripció física:1 online resource (47 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Accés:Electronic access restricted to authorized BRAC University faculty, staff and students