Economics of Money, Banking and Financial Markets - With Access
Economics of Money, Banking and Financial Markets - With Access
11th Edition
ISBN: 9780134151809
Author: Mishkin
Publisher: PEARSON
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Chapter 25, Problem 22Q
To determine

The evidence that exists to support the credit view of monetary policy.

Introduction:

Credit view of monetary policy indicates the role of credit in the macro economy. It suggests that the monetary policy of the Central bank not only affects the economy through their effect on the liability side of the banks’ balance sheets, but also through their direct effect on bank lending.

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