Article ID Journal Published Year Pages File Type
5055466 Economic Modelling 2011 11 Pages PDF
Abstract
► I introduce monopolistically competitive banks into a New Keynesian DSGE model. ► Commercial banks set retail interest rates subject to quadratic adjustment costs. ► If a complement to consumption, deposit market power accelerates monetary shocks. ► Imperfect competition in the loan market attenuates monetary policy pass-through.
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Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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Competition among banks and the pass-through of monetary policy
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