Private Sector Debt, Financial Constraints, and the Effects of Monetary Policy: Evidence from the US
| Autor: | Max Breitenlechner, Johann Scharler |
|---|---|
| Rok vydání: | 2019 |
| Předmět: |
Statistics and Probability
Finance Economics and Econometrics business.industry media_common.quotation_subject 05 social sciences Monetary policy Private sector Monetary policy transmission Real gross domestic product Debt 0502 economics and business Economics 050207 economics Statistics Probability and Uncertainty business Social Sciences (miscellaneous) 050205 econometrics media_common |
| Zdroj: | Oxford Bulletin of Economics and Statistics. 82:889-915 |
| ISSN: | 1468-0084 0305-9049 |
| DOI: | 10.1111/obes.12349 |
| Popis: | We characterize the response of U.S. real GDP to monetary policy shocks conditional on the level of private sector debt and the degree to which financial constraints are binding. To incorporate state‐dependent effects of monetary policy, we use the local projection framework. We find that although the amount of private sector debt potentially weakens the monetary policy transmission mechanism, policy shocks exert substantially larger effects on output when high private debt coincides with binding financial constraints. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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