01667cas a2200241 a 4500 AALejournalIMF014899 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484336557 1018-5941 BD-DhAAL BD-DhAAL Taheri Sanjani, Marzie. Financial Frictions in Data : Evidence and Impact / Marzie Taheri Sanjani. Washington, D.C. : International Monetary Fund, 2014. 1 online resource (33 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 investigates financial frictions in US postwar data to understand the interaction between the real business cycle and the credit market. A Bayesian estimation technique is used to estimate a large Vector Autoregression and New Keynesian models demonstrating how financial shocks can have a large and sluggish impact on the economy. I identify the default risk and the maturity mismatch channels of monetary policy transmission; I further employ a generalized-IRF to establish countercyclicality of risk spreads; and I show that the maturity mismatch shocks produce a stronger impact than the default risk shocks. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2014/238 Full text available on IMF http://elibrary.imf.org/view/journals/001/2014/238/001.2014.issue-238-en.xml IMF e-Library