Credit, Money, and Aggregate Demand

Inflation Targeting and Sudden Stops

“…The aggregate demand equation, (9), is a simple parameterization of the aggregate demand in the prior section, (1) In the V regime, the sudden stop implies that i'^'^> i* (see (2) (9) also applied at date t -1.…”

Aggregate Demand, Conflict, and Capacity in the Inflationary Process

“…The conclusions reached are: "(1) all else being equal, investment is significantly correlated with proxies for changes in net worth or internal funds; and (2) that correlation is most important for firms likely to face information-related capital-market imperfections" (p. 193). The importance of the external funds and cash flow variables are also emphasized in studies by Bernanke and Blinder (1988), Gertler (1989, 1999), and more recently by Greenspan (2002). The latter argues that "capital investment will be most dependent on the outlook of profits and the resolution of the uncertainties surrounding the business outlook and the geopolitical situation.…”

Interest-Rate Rules in a New Keynesian Framework with Investment

“…The narrow credit channel emphasised by Hall (2001) 14 and Bernanke and Blinder (1988) concerns the role of the banking sector as lender. When monetary policy induces changes of banking sector's total reserves, the supply of loans to the private sector will be affected.…”