The role of interbank markets in monetary policy: A model with rationing

Journal of Money, Credit and Banking

Volumn 40, Issue 6, 2008, Pages 1151-1176

  Freixas, Xavier ^a,b   Jorge, José ^c  

^a UNIVERSITAT POMPEU FABRA   (Spain)

^b CEPR ^*

^c UNIVERSITY OF PORTO   (Portugal)

Author keywords

Banking; Monetary policy; Rationing

Indexed keywords

EID: 49649092230     PISSN: 00222879     EISSN: None     Source Type: Journal    
DOI: 10.1111/j.1538-4616.2008.00152.x     Document Type: Article

References (41)

1. Ackerloff, George 1970 The Market for Lemons: Quality Uncertainty and the Market Mechanism Quarterly Journal of Economics, 84, 488 500.
2. Aghion, Philippe, Patrick Bolton, and Steven Fries 1999 Optimal Design of Bank Bailouts: The Case of Transition Economies Journal of Institutional and Theoretical Economics, 155, 51 70.
3. Angeloni, Ignazio, Benoît Mojon, Anil K. Kashyap, and Daniele Terlizzese 2002 Monetary Transmission in the Euro Area: Where Do We Stand European Central Bank Working Paper, 114, European Central Bank.
4. Ashcraft, Adam B 2006 New Evidence on the Lending Channel Journal of Money, Credit, and Banking, 38, 751 75.
5. Ashcraft, Adam B., and Hoyt Bleakley 2006 On the Market Discipline of Informationally Opaque Firms: Evidence from Bank Borrowers in the Federal Funds Market Staff Reports of the Federal Reserve Bank of New York, 257, Federal Reserve Bank of New York.
6. Bhattacharia, Sudipto, and Douglas Gale 1987 Preference Shocks, Liquidity, and Central Bank Policy In New Approaches to Monetary Economics, edited by W. Barnett and K. Singleton, pp. 69 88. Cambridge : Cambridge University Press.
7. Berger, Allen, and Gregory Udell 1992 Some Evidence on the Empirical Significance of Credit Rationing Journal of Political Economy, 100, 1047 77.
8. Bernanke, Ben, and Mark Gertler 1989 Agency Costs, Net Worth, and Business Fluctuations American Economic Review, 79, 14 31.
9. Bernanke, Ben, and Mark Gertler 1990 Financial Fragility and Economic Performance Quarterly Journal of Economics, 105, 87 114.
10. Bernanke, Ben, and Mark Gertler 1995 Inside the Black Box: The Credit Channel of Monetary Policy Transmission Journal of Economic Perspectives, 9, 27 48.
11. Boot, Arnoud 2000 Relationship Banking: What Do We Know Journal of Financial Intermediation, 9, 7 25.
12. Broecker, Thorsten 1990 Credit-Worthiness Tests and Interbank Competition Econometrica, 58, 429 52.
13. Calomiris, Charles W., and Charles M. Kahn 1991 The Role of Demandable Debt in Structuring Optimal Banking Arrangements American Economic Review, 81, 497 513.
14. Cecchetti, Stephen 1999 Legal Structure, Financial Structure, and the Monetary Policy Transmission Mechanism Federal Reserve Bank of New York Economic Policy Review, July 1999, 9 28.
15. Cleary, Sean 1999 The Relationship Between Firm Investment and Financial Status Journal of Finance, 54, 673 92.
16. Cocco, Joao F., Francisco J. Gomes, and Nuno C. Martins 2003 Lending Relationships in the Interbank Market AFA 2004 San Diego Meetings.
17. Degryse, Hans, and Steven Ongena 2005 Distance, Lending Relationships, and Competition Journal of Finance, 60, 231 66.
18. Diamond, Douglas W., and Raghuram G. Rajan 2001 Liquidity Risk, Liquidity Creation and Financial Fragility: A Theory of Banking Journal of Political Economy 109, 287 327.
19. Ehrmann, Michael, and Andreas Worms 2004 Bank Networks and Monetary Policy Transmission Journal of the European Economic Association, 2, 1148 71.
20. Flannery, Mark 1996 Financial Crisis, Payment System Problems, and Discount Window Lending Journal of Money, Credit, and Banking, 28, 804 24.
21. Freixas, Xavier, and Cornelia Holthausen 2005 Interbank Market Integration under Asymmetric Information Review of Financial Studies, 18, 459 90.
22. Furfine, Craig 1999 The Microstructure of the Federal Funds Market Financial Markets, Institutions and Instruments, 8, 24 44.
23. Furfine, Craig 2001 Banks Monitoring Banks: Evidence from the Overnight Federal Funds Market Journal of Business, 74, 33 58.
24. Goodfriend, Marvin, and Robert King 1988 Financial Deregulation, Monetary Policy, and Central Banking Federal Reserve Bank of Richmond Economic Review, May/June 1988, 3 22.
25. Holmstrom, Bengt, and Jean Tirole 1998 Private and Public Supply of Liquidity Journal of Political Economy, 106, 1 40.
26. Hubbard, R. Glenn 1998 Capital Market Imperfections and Investment Journal of Economic Literature, 35, 193 225.
27. Kaplan, Steven K., and Luigi Zingales 1997 Do Investment Cash Flow Sensitivities Provide Useful Measures of Financing Constraints Quarterly Journal of Economics, 112, 169 215.
28. Kashyap, Anil K., and Jeremy Stein 1994 Monetary Policy and Bank Lending In Monetary Policy, edited by N. Gregory Mankiw, pp. 221 56. Chicago : University of Chicago Press.
29. Kashyap, Anil K., and Jeremy Stein 1997 The Role of Banks in Monetary Policy: A Survey with Implications for the EMU Federal Reserve Bank of Chicago Economic Perspectives, September, 8 18.
30. Kashyap, Anil K., and Jeremy Stein 2000 What Do a Million Observations on Banks Have to Say About the Transmission of Monetary Policy American Economic Review, 90, 407 28.
31. Kashyap, Anil K., Jeremy C. Stein and David W. Wilcox 1993 Monetary Policy and Credit Conditions: Evidence from the Composition of External Finance American Economic Review, 83, 78 98.
32. Mihov, Ilian 2001 Monetary Policy Implementation and Transmission in the European Monetary Union Economic Policy, 33, 370 406.
33. Mitchell, Janet 2000 Bad Debts and the Cleaning, Tranferring of Banks' Balance Sheets: An Application to Transition Economies Journal of Financial Intermediation, 10, 1 27.
34. Rochet, Jean-Charles, and Jean Tirole 1996 Interbank Lending and Systemic Risk Journal of Money, Credit, and Banking, 28, 733 62.
35. Schiantarelli, Fabio 1995 Financial Constraints and Investment: a Critical Review of Methodological Issues and International Evidence In Is Bank Lending Important for the Transmission of Monetary Policy edited by Joe Peek and Eric S. Rosengren, pp. 177 214, Boston : Federal Reserve Bank of Boston.
36. Schwartz, Anna 1992 The Misuse of the Fed's Discount Window Federal Reserve of St. Louis Review, September/October 1992, 58 69.
37. Stahl, Dale O 1988 Bertrand Competition for Inputs and Walrasian Outcomes American Economic Review, 78, 189 201.
38. Stein, Jeremy 1998 An Adverse-Selection Model of Bank Asset and Liability Management with Implications for the Transmission of Monetary Policy RAND Journal of Economics, 29, 466 86.
39. Stiglitz, Joseph E., and Andrew Weiss 1981 Credit Rationing in Markets with Imperfect Information American Economic Review, 71, 393 410.
40. Van den Heuvel, Skander 2006 The Bank Capital Channel of Monetary Policy Society for Economic Dynamics 2006 Meeting Papers, 512.
41. Yannelle, Marie-Odile 1997 Banking Competition and Market Efficiency Review of Economic Studies, 64, 215 39.