“…Empirically, the literature also leads to divergent conclusions. For the first group of studies, monetary policy does not affect FS (Blot, 2015;Laseen and Pescator, 2020). On the other hand, using a linear specification of the Taylor rule, several works have provided evidence that the central bank is concerned with FS in the conduct of monetary policy in developed and emerging countries (Diamond and Rajan, 2012;Nair and Anand, 2020).…”