Credit spread and monetary policy

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

We show that the spread-adjusted Taylor rule including a response to the credit spread is a theoretically optimal monetary policy under heterogeneous loan contracts. However, the optimal response to the credit spread is ambiguous, given the financial market structure.

Original languageEnglish
Pages (from-to)26-28
Number of pages3
JournalEconomics Letters
Volume114
Issue number1
DOIs
Publication statusPublished - 2012 Jan
Externally publishedYes

Fingerprint

Monetary policy
Credit spreads
Loans
Market structure
Optimal monetary policy
Taylor rule
Financial markets

Keywords

  • Credit spread
  • Heterogeneous loan contracts
  • Optimal monetary policy

ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance

Cite this

Credit spread and monetary policy. / Teranishi, Yuuki.

In: Economics Letters, Vol. 114, No. 1, 01.2012, p. 26-28.

Research output: Contribution to journalArticle

Teranishi, Yuuki. / Credit spread and monetary policy. In: Economics Letters. 2012 ; Vol. 114, No. 1. pp. 26-28.
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