This paper investigates the portfolio behavior of bank loans following a monetary tightening. We find that real estate and consumer loans sharply decrease, while commercial and industrial (C&I) loans increase. We compare this behavior with the responses following non-monetary shocks, which also reduce output but keep interest rates roughly unchanged. During such a "non-monetary" downturn, C&I loans sharply decrease, while real estate and consumer loans show no substantial response. These responses, together with the responses of relevant lending rates, are hard to reconcile with a decline in the supply of C&I bank loans during a monetary downturn as stressed by the bank-lending channel. Instead, we give several arguments why the supply of C&I loans may actually increase after a monetary contraction.JEL codes: E40

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract: In this paper, we study the short-run and long-run comovement between prices and real activity in the G7 countries during the postwar period using VAR forecast errors and frequency domain filters. We find several patterns of the correlation coefficients that are robust across countries and time periods; typically, the correlation coefficients at long-run horizons are significantly negative and the correlation coefficients at short-run horizons are substantially higher. Additionally, there is evidence of positive correlation at short-run forecast horizons for some countries. Terms of use: Documents inWe are grateful to

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract: In this paper, we study the short-run and long-run comovement between prices and real activity in the G7 countries during the postwar period using VAR forecast errors and frequency domain filters. We find several patterns of the correlation coefficients that are robust across countries and time periods; typically, the correlation coefficients at long-run horizons are significantly negative and the correlation coefficients at short-run horizons are substantially higher. Additionally, there is evidence of positive correlation at short-run forecast horizons for some countries. Terms of use: Documents inWe are grateful to

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Heterosexual privilege is a challenging concept to teach in undergraduate courses. Using data from self-reflection essays on the first and last days of the semester, we present students' learning and growth in their understanding of heterosexual privilege and their ability to distinguish it from cisgender privilege. The majority of students accurately identified an instance of heterosexual privilege in their lives and discussed the counterpart to privilege: the marginalization and/or disenfranchisement experienced by individuals who hold other sexual identities. This article highlights the two most common misunderstandings of heterosexual privilege that emerged in students' writing. On the first day of class, 18.2% outright denied that heterosexual privilege exists, and 17.6% conflated gender with sexuality. It reduced to 11.9% and 11.3%, respectively, on the last day of class. We saw growth in students' sophistication of perspective even for some students who demonstrated these misunderstandings at the end of the term.

Following a monetary tightening, bank loans to consumers decrease. This is true for both mortgage and non-mortgage loans, and it is true for a tightening by the Bank of Canada that is, and is not, a response to a tightening by the Federal Reserve System. In contrast, business loans increase following a monetary tightening. The 'perverse' response of business loans cannot be explained by an increase in the demand for funds due to a reduction in real activity. These results are consistent with a change in bank portfolio behaviour in favour of business loans in response to a monetary tightening. JEL classification: E40Portefeuilles de prêts bancaires et le mécanisme de transmission monétaire canadien. A la suite d'une restriction monétaire, les prêts bancaires aux consommateurs chutent. C'est vrai tant pour les prêts hypothécaires que non-hypothécaires, et c'est vrai pour une restriction monétaire de la Banque du Canada, qu'elle soit ou non le résultat d'une restriction de la Réserve Fédérale américaine. A l'inverse, les prêts bancaires aux entreprises s'accroissent suiteà une restriction monétaire. Cette réponse 'perverse' des prêts aux entreprises ne peut pas s'expliquer par un accroissement de la demande de fonds attribuableà un déclin de l'activitééconomique. Ces résultats sont consistants avec un changement du comportement des banques qui déplacent leurs portefeuilles de prêts en faveur des entreporises quand il y a restriction monétaire.Den Haan is also affiliated with the CEPR. We would like to thank Francisco Covas and Nicolas Raymond for assistance with obtaining the Canadian data and Craig Burnside, Zhiwei Zhang, and two anonymous referees for useful comments.