Premium
Is There a Bank‐Lending Channel of Monetary Policy in New Zealand?
Author(s) -
GUENDER ALFRED V.
Publication year - 1998
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1998.tb01922.x
Subject(s) - monetary policy , economics , channel (broadcasting) , credit channel , interest rate , monetary economics , inflation targeting , telecommunications , computer science
The results reported in the paper cast serious doubt on the existence of a potent bank‐lending channel of monetary policy in New Zealand either before or after the reforms of the mid‐1980s. We find no sound evidence of a link between a number of different finance mix variables and economic activity in New Zealand. Similar, unfavourable results are reported by the investigation of the connection between movements in an interest rate spread and real economic performance. Moreover, neither the finance mix variables nor the spread respond consistently to changes in various indicators of monetary policy.