Browsing by Subject "välittymismekanismit"

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  • Mayes, David; Virén, Matti (2004)
    Suomen Pankin keskustelualoitteita 9/2004
    Using quarterly data for the period since 1987 this paper explores, in the context of a small model of the EU economy, the degree to which monetary policy has been asymmetric.It shows in particular that monetary policy has been much more responsive to threats that inflation would lie outside the price stability target than to equal sized shocks within the target zone. Similarly monetary policy has responded to threats of large positive and negative output gaps but has remained largely unresponsive to smaller divergences.It thus appears that the ECB and its predecessors have been avoiding 'fine-tuning' but have been aggressive in responding to substantial threats to macroeconomic stability.The action seems to have been stronger with respect to inflationary pressure than to deflation but this may offset any bias in fiscal policy.The asymmetric response of policy in part reflects considerable non-linearities and asymmetries in the behaviour of the euro area economies.High unemployment has relatively limited effect in pulling inflation down while low unemployment can be much more effective in driving it up.Economic downturns are both more rapid and sustained in driving unemployment up than recoveries are in bringing it down. There is considerable variety in these relationships and IS curves across countries, sectors and regions.Monetary policy reacts in the light of this. Key words: monetary policy, asymmetry JEL classification numbers: E52, E61
  • Putkuri, Hanna (2003)
    Suomen Pankin keskustelualoitteita 15/2003
    Since 1 January 1999 the ECB has conducted a single monetary policy in the euro area, but the mechanisms by which and the extent to which monetary shocks are transmitted into prices and real economic activity may vary from country to country.This paper investigates how and to what extent the impact of monetary policy depends on national features of financial systems.The main interest is in examining whether the bank lending channel of monetary policy results in asymmetric loan supply reactions on the aggregate level across countries. The variety of transmission mechanisms suggests that the potency of monetary policy may depend on several country-specific factors.On the basis of descriptive analysis, the present Member States seem to differ considerably in terms of their financial systems.The econometric analysis using aggregate data on a panel of twelve countries supports the view that some of these differences may lead to cross-country asymmetries in responses to the common monetary policy.In particular, a larger size and a lower degree of capitalisation of a banking sector are found to strengthen the bank lending channel on the aggregate level. Key words: EMU, monetary transmission, bank lending channel, panel data analysis
  • Topi, Jukka (2003)
    Suomen Pankki. E 24
    This study discusses the effects of financial intermediation, banks' moral hazard and monitoring on monetary policy transmission in a simple model where borrowers are dependent on loans granted by banks with superior monitoring skills.As distinct from the prior literature on monetary policy transmission, this study does not regard banks' deposit funding as a reason for their special role in the monetary transmission.Instead, we focus on banks' role in monitoring their loan customers as part of financial intermediation and on the effects of monitoring on monetary policy. We find that when the intensity of monitoring is endogenous banks acting as financial intermediaries with moral hazard problems respond less to monetary policy in lending than nonintermediary lenders that only lend their own capital without moral hazard problems.We also find that in the model the lending response of intermediary banks to monetary policy depends on the ratio of their own capital to the volume of lending.The finding is fairly insensitive to the market structure of the banking sector.In the case of a monopoly bank, an increase in the bank's capital-to-loans ratio always weakens the transmission of monetary policy to bank lending.In the case of competitive banks, an increase in the capital-to-loans ratio weakens the transmission of monetary policy to aggregate bank lending, up to a critical level. Using a data set covering the Finnish banking sector in 1995-2000, we also offer some tentative empirical evidence that is broadly consistent with the model.Banks with higher capital ratios tend to respond less to changes in monetary policy.Our conclusion is that the outcome of the model might be helpful in explaining the heterogeneity of banks' responses to monetary policy, which frequently observed in the empirical literature. Keywords: monetary policy transmission, monitoring, moral hazard, bank lending channel
  • Mehrotra, Aaron (2005)
    BOFIT Discussion Papers 17/2005
    Published in Journal of Comparative Economics, March 2007, Vol. 35, No 1, pp. 188-210
    We examine the role of the exchange and interest rate channels during recent deflation episodes in Japan, Hong Kong and China.We estimate open-economy structural vector autoregressive (SVAR) models for the three economies with different monetary regimes and varying degrees of openness.In both Japan and Hong Kong, shocks to the nominal effective exchange rate have a statistically significant impact on prices, with a notably stronger effect in Hong Kong.Our results provide evidence about the role of external influences in the deflation episodes of these economies, and could also be seen to weakly support suggestions to depreciate the currency in order to escape from a liquidity trap.The importance of the interest rate channel is also found to be high in Japan and Hong Kong.In China, where interest rates have not been an important monetary policy tool, neither exchange nor interest rate shocks significantly influence price developments. Keywords: Deflation, Zero lower bound, SVAR JEL Classification: E31, F41
  • Redward, Peter; Saarenheimo, Tuomas (1996)
    Suomen Pankin keskustelualoitteita 22/1996
    In this paper we analyse the empirical relevance of the mechanisms through which the Bank of Finland's actions are transmitted to the Finnish economy.We concentrate on the first stage of the monetary policy transmission mechanism; namely, the effect of the Bank's actions on domestic market interest rates and the exchange rate. The questions we analyse include: What is the impact of a change in the Bank of Finland's one month tender rate on interest rates of longer maturities and on the exchange rate?How do Finnish interest rates and the exchange rate react to turmoil in foreign money and bond markets?To what extent can recent developments in Finnish interest rates be attributed to the Bank of Finland's policies? We find that the effect of a monetary policy shock is limited to the short end of the yield curve.Changes in the Bank of Finland's tender rate seem to signal the future path of short rates for a period of 1-2 years.On the other hand, Finnish bond rates appear to follow closely circumstances in the international financial market and do not seem to react systematically to changes in the Bank of Finland's tender rate.We find that monetary policy has contributed little to the large swings in Finnish bond rates experienced over the last few years.Most of the variation in bond rates can be attributed to changes in international long rates and changes in the perceived overall credibility of the Finnish economy. Key words: monetary policy transmission, VAR-models, Finland
  • Ripatti, Antti (1997)
    Suomen Pankin keskustelualoitteita 17/1997
    In order to study the role of money in an inflation targeting regime for monetary policy, we compare the interest rate and money as monetary policy instruments.Our dynamic stochastic general equilibrium model combines the money-in-the-utility-function approach with sticky prices.We allow for time-varying preferences for real money balances, ie velocity shocks, and stochastic aggregate costs in production, ie 'technology shocks'.We show that conditioning the interest rate on the expected future cost change can be used to achieve constant inflation or constant inflation expectations.The assumed adjustment costs in 'money demand' lead to an equilibrium in which inflation can be controlled by money growth without information on the current state of the economy. Finally, we discuss the tradeoff between money and the interest rate as a monetary policy instrument.The result depends on the parameter stability of the cost change process relative to that of the 'money demand' function. Keywords: monetary transmission mechanism, money-in-the-utility-function model, sticky prices, technology shock, monetary policy strategy.JEL classification: E31, E41, E52
  • Ilmakunnas, Pekka; Topi, Jukka (1996)
    Suomen Pankin keskustelualoitteita 6/1996
    We examine the entry and exit process in the Finnish manufacturing industry.Microeconomic explanations of entry and exit are derived from industrial organization theory and macroeconomic explanations from the theory of monetary transmission mechanism.Since the variables to be explained, the number of entering and exiting firms, are non-negative integers, we use Poisson and negative binomial models in the estimation.The data is a six year panel of three-digit industries.The results show that scale economies form a significant entry barrier, but the evidence on their role as an exit barrier is weaker.Concentration has a negative impact on entry, but this result is not robust to the choice of estimation method.Industry growth has a positive influence on entry and a negative influence on exit, but also variables describing the general economic climate have an influence on the entry-exit process.The variables describing the monetary transmission mechanism have an expected influence on entry. Credit supply has a positive and real interest rate a negative effect on entry.However, the role of the macroeconomic influences on exit is inconclusive.Past entry has a significant effect on exit, which reflects the displacement of old firms by new ones and the short life expectancy of new firms.Both entry and exit have almost unit elasticity with respect to industry size, measured by the number of firms in the previous period.Entry and exit rates are therefore practically independent of industry size. Keywords: Entry, exit, monetary transmission mechanism.
  • Kerola, Eeva (2014)
    Euro & talous. Rahapolitiikka ja kansainvälinen talous 4
    Lainananto kotitalouksille ja yrityksille on ollut jähmeää ja luottoehdot ovat säilyneet monissa euromaissa kireinä. Kesäkuussa 2014 EKP:n neuvosto päätti tukea pankkien lainanantoa yrityssektorille lupaamalla aloittaa kohdennettujen pitempiaikaisten rahoitusoperaatioiden sarjan. Vaikka pankkisektorin merkitys rahapolitiikan välittymisessä reaalitalouteen on suuri, pankkien luottoehtojen muutosten taustatekijöitä euroalueella ei ole empiirisesti analysoitu. Tässä artikkelissa selvitetään EKP:n toteuttaman euroalueen pankkien luotonantokyselyn (Bank Lending Survey, BLS) avulla, missä määrin yrityslainojen luottoehtojen muutokset johtuvat tarjonta- ja kysyntäpuolen tekijöistä, miten lainaa hakevan yrityksen koko vaikuttaa luottoehtoihin ja miten kriisiytyneiden maiden tilanne poikkeaa muista euromaista.
  • Koivu, Tuuli (2010)
    BOFIT Discussion Papers 18/2010
    Published in Economic Systems, Volume 36, Issue 2, (June 2012); 307–325
    This paper studies the wealth channel in China. Using the structural vector autoregression method, we find that a loosening of China.s monetary policy indeed leads to higher asset prices, which in turn are linked to household consumption. However, the importance of the wealth channel as a part of the monetary policy transmission mechanism in China is still limited. Keywords: China, monetary policy, asset prices JEL classification: E52, P24
  • Coricelli, Fabrizio; Égert, Balázs; MacDonald, Ronald (2006)
    BOFIT Discussion Papers 8/2006
    This paper surveys recent advances in empirical studies of the monetary transmission mechanism (MTM), with special attention to Central and Eastern Europe.In particular, while laying out the functioning of the separate channels in the MTM, it explores possible interrelations between different channels and their impact on prices and the real economy.The empirical findings for Central and Eastern Europe are then briefly compared with results for industrialized countries, especially for the euro area.We highlight potential pitfalls in the literature and assess the relative importance, and potential development, of the different channels, emphasizing the relevant asymmetries between Central and Eastern European countries and the euro area. JEL classification: E31, E51, E58, F31, O11, P20 Keywords: Monetary transmission, transition, Central and Eastern Europe, credit channel, interest rate channel, interest-rate pass-through, exchange rate channel, exchange rate pass-through, asset price channel
  • (2002)
    Euroopan keskuspankki. Kuukausikatsaus Lokakuu
    Tämä artikkeli perustuu eurojärjestelmän tekemään tutkimukseen, ja sen tarkoituksena on tehdä yhteenveto tuoreista havainnoista rahapolitiikan välittymisestä euroalueella.Artikkeli rakentuu kolmen kysymyksen ympärille: Mitkä ovat rahapolitiikan muutosten arvioidut vaikutukset hintoihin ja euroalueen tuotantoon?Kuinka nämä vaikutukset välittyvät?Kuinka rahapolitiikan vaikutukset vaihtelevat ajan funktiona tai eri toimialoilla taikka euroalueen eri maissa? Tutkimuksen kutakin kysymystä koskevat tärkeimmät havainnot voidaan tiivistää seuraavasti.Rahapolitiikan muutokset vaikuttavat tilapäisesti euroalueen kokonaistuotantoon, ja ajan myötä tuotanto palaa lähelle aiempaa tasoa.Rahapolitiikan muutokset vaikuttavat kuluttajahintoihin pitkään, vaikka vaikutus onkin aluksi vähäinen. Tässä artikkelissa esitetyt tutkimustulokset tukevat näitä yleisiä havaintoja.Tästä huolimatta rahapolitiikan välittymisen viipeiden yksityiskohdista ollaan epävarmoja.Tämä johtuu osittain siitä, että asiaa koskeva analyysi perustuu väistämättä euron käyttöönottoa edeltäviin tietoihin.Rahapolitiikan välittyminen tapahtuu viipeellä, jonka pituus vaihtelee, mikä vahvistaa käsitystä, että rahapolitiikan strategian on toimittava keskipitkällä aikavälillä ja että siinä ei pidä pyrkiä tuotannon tai hintojen lyhyen aikavälin hienosäätöön.Investoinnit vaikuttavat olevan merkittävä tekijä tuotantomäärien muuttumisessa rahapolitiikan sokin jälkeen.Tutkimuksen havainnot vahvistavat, että yritysten investoinnit ovat herkkiä pääoman käyttökustannuksille sekä vähäisemmässä määrin likviditeetin tai kassavirran vaihteluille.Rahoituksen ja luoton saamisen vaikeus näyttää vaikuttavan siihen, kuinka joissakin euroalueen maissa ja tietyntyyppisissä yrityksissä ja pankeissa on reagoitu rahapolitiikan muutoksiin, mutta tämä ei kuitenkaan vaikuta olevan keskeisen tärkeää koko euroalueella. Empiirinen aineisto ei näytä viittaavan siihen, että rahapolitiikan välittyminen vaihtelisi systemaattisesti eri maissa, ei ainakaan siinä määrin, että eri tutkimuksista tai eri menetelmillä saadut tulokset vahvistaisivat tämän. On kuitenkin merkkejä siitä, että rahapolitiikan muutosten vaikutukset välittyvät eri tavoin eri toimialoilla ja että rahapolitiikka saattaa vaikuttaa tuotantoon tavanomaista enemmän aikoina, jolloin kotitalouksien ja yritysten taseet ovat heikkoja, kuten laskusuhdanteessa.
  • Korhonen, Tapio; Vanhala, Juuso (2007)
    Suomen Pankki. BoF online 2007/16
    1 Johdanto 4 2 Rahapolitiikan välittymisen mekanismit 8 3 Rahoitusmarkkinoiden uudet ilmiöt 11 4 Viimeaikainen rahoitusmarkkinahäiriö 13 4.1 Korkokanava 14 4.2 Valuuttakurssikanava 19 4.3 Yleisön likviditeetti ja rahamäärä 21 4.4 Varallisuuskanava 23 4.5 Luottokanava 24 5 Johtopäätöksiä 27 Liite 1. Katsaus rahapolitiikan välittymiskanaviin 29 Kirjallisuutta 41
  • Peisa, Paavo (1995)
    MARKKA & TALOUS 4/1995
  • (2000)
    Euroopan keskuspankki. Kuukausikatsaus Heinäkuu
    Rahapolitiikan välittymismekanismi koostuu monista eri kanavista, joiden kautta rahapoliittiset toimenpiteet vaikuttavat talouteen ja etenkin hintatasoon.Vakaan rahapolitiikan toteuttamisen kannalta välittymismekanismin hyvä ymmärtäminen on tärkeä, koska sen avulla voidaan harkita hintavakauden ylläpitämiseksi tarvittavien rahopoliittisten päätösten laajuutta ja ajoitusta.
  • Leong, Kenneth (2002)
    Suomen Pankin keskustelualoitteita 19/2002
    Despite sound theoretical foundations, a drawback of the New Keynesian model is its inability to generate adequate persistence in the variables it seeks to explain.A common solution is to modify the model to include lagged variables.However, this is unsatisfactory, as many such modifications depart from the microeconomic underpinnings of the original model.This paper presents results from simulation exercises that support the fully forward-looking New Keynesian model.In particular, we show that the exchange rate channel of monetary policy, which has been largely overlooked in existing studies of persistence, is instrumental in generating inflation persistence.However, the combination of full forward-looking behaviour and an open economy is unable to generate sufficient persistence in the output gap. Adding an autocorrelated noise term to the assumption of rational expectations makes the model capable of generating persistence matching that of US inflation, the output gap, and the nominal interest rate, as well as the real exchange rate. Key words: New Keynesian model, rational expectations, persistence, open economy JEL classification numbers: E31, E52
  • Milne, Alistair; Wood, Geoffrey (2009)
    Bank of Finland Research Discussion Papers 2/2009
    It has been widely accepted that constraints on the wholesale funding of bank balance sheets amplify the transmission of monetary policy through what is called the bank lending channel . We show that the effect of such bank balance sheet constraints on monetary transmission is in fact theoretically ambiguous, with the prior expectation, based on standard theoretical models of household and corporate portfolios, that the bank lending channel attenuates monetary policy transmission. We examine macroeconomic data for the G8 countries and find no evidence that banking sector deposits respond negatively and more than lending to tightening of monetary policy, as the accepted view of the bank lending channel requires. The overall picture is mixed, but these data generally suggest that deposits fluctuate procyclically and somewhat less over the business cycle than bank lending, and that total bank deposits, unlike bank lending, show little direct response to changes in interest rates. This suggests it is very unlikely that the bank lending channel amplifies monetary policy. Our paper has thus corrected a misunderstanding about the role of banks in monetary policy transmission that has persisted in the literature for some two decades.
  • Iacoviello, Matteo; Minetti, Raoul (2000)
    Suomen Pankin keskustelualoitteita 14/2000
    This paper tests for the presence of a credit channel (particularly a bank-lending sub-channel) for monetary policy in the housing market.We argue that the importance of this channel for investment in residential housing is highly dependent on the structural features, and particularly the efficiency and institutional organization, of housing finance.We employ a VAR methodology to analyse this issue with respect to the housing markets of four European countries (Finland, Germany, Norway and the United Kingdom), which differ greatly in terms of structural features.Our results are generally consistent with the existence of a broad credit channel, whereas the bank-lending channel seems to be operational only under certain conditions.More importantly, our results are consistent with previous analyses of housing market efficiency, which strongly suggests the existence of a clear relationship between the presence of a credit (bank lending) channel, the efficiency level of housing finance, and the type of institutions that are active in mortgage provision. Keywords: monetary transmission, bank lending channel, house prices, vector autoregressions
  • Sénégas, Marc-Alexandre; Vilmunen, Jouko (1999)
    Suomen Pankin keskustelualoitteita 14/1999
    In this paper we address the issue of how parameter uncertainty affects the optimal degree of central bank conservatism.The analysis is conducted in the standard macroeconomic model of a monetary policy game embedding an expectational Phillips-curve. Multiplicative "Brainard" uncertainty is added to the model.This means that the central bank's policy instrument has a stochastic impact on inflation.This type of uncertainty is particularly interesting, since it affects the credibility-flexibility tradeoff in monetary policymaking.We show that if the flexibility problem dominates, an increase in uncertainty reduces optimal conservatism. However, increases in uncertainty can also require increases in the optimal degree of conservatism.This happens when the central bank has a sufficiently large credibility problem.This is particularly clear in the case of the introduction of uncertainty at the margin. Furthermore, the coefficient of variation of inflation appears to contain useful information about the relative size of the credibility problem and, hence, about how incipient uncertainty can affect optimal conservatism in actual economies. Keywords: credibility, flexibility, monetary policy, conservatism, uncertainty
  • Kilponen, Juha; Milne, Alistair (2007)
    Bank of Finland Research Discussion Papers 33/2007
    Building on Cecchetti and Li (2005), we show that the bank lending channel affects monetary policy trade-offs only when interest rates affect marginal costs of production (ie when there is a cost channel of monetary policy) in the New Keynesian monetary policy model. In our calibrated model the resulting impact of the bank lending channel on output-inflation trade-offs is quantitatively small and of ambiguous sign. When bank capital varies counter cyclically and bank loan rates have a relatively large impact on marginal costs, variation of bank loan margins improves monetary policy trade-offs. The new Basel accord, by increasing capital requirements during economic downturns, offsets this beneficial impact. Keywords: bank capital, bank lending, capital buffers, pro-cyclicality, capital regulation, cost channel, credit channel, loan margins, monetary trade-offs JEL classification numbers: E51, E52, G21
  • Juurikkala, Tuuli; Karas, Alexei; Solanko, Laura (2009)
    BOFIT Discussion Papers 8/2009
    Published in Review of International Economics, 19(1), February 2011: 109–121
    This paper focuses on the role of the banking sector in monetary policy transmission in an emerging economy with a rapidly developing financial system. Specifically, we exam whether the central bank's monetary policy stance affects banks' lending behaviour. Based on a comprehensive quarterly dataset on all Russian banks from 1Q1999 to 1Q2007, we find evidence for the existence of a bank lending channel in Russia. Contrary to several studies on developed economies, the level of a bank's capitalization matters for the transmission process. Better capitalized banks are less likely to adjust their lending practices following a change in the monetary policy stance.