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Lookup NU author(s): Dr Anastasios Evgenidis
This is the authors' accepted manuscript of an article that has been published in its final definitive form by Elsevier B.V., 2019.
For re-use rights please refer to the publisher's terms and conditions.
© 2019 Elsevier B.V.We disentangle credit supply and demand and we then embed this information into a Bayesian threshold VAR model to investigate the importance of the demand channel and the broad credit channel in the transmission of unconventional monetary policy on the macroeconomy during financial stress periods. We find that during such periods, UMP shocks boost aggregate demand for loans, increase agents’ net worth and revitalize credit to firms and households. In addition, counterfactual analysis suggests that non-standard policy measures aiming at stimulating loan demand and relaxing banks’ balance sheet constraints would provide a significant support to economic activity, prices and the financial sector.
Author(s): Evgenidis A, Salachas E
Publication type: Article
Publication status: Published
Journal: Economics Letters
Online publication date: 04/10/2019
Acceptance date: 13/09/2019
Date deposited: 30/10/2019
ISSN (print): 0165-1765
ISSN (electronic): 1873-7374
Publisher: Elsevier B.V.
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