Credit spread and monetary policy

C-Tier
Journal: Economics Letters
Year: 2012
Volume: 114
Issue: 1
Pages: 26-28

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We show that the spread-adjusted Taylor rule including a response to the credit spread is a theoretically optimal monetary policy under heterogeneous loan contracts. However, the optimal response to the credit spread is ambiguous, given the financial market structure.

Technical Details

RePEc Handle
repec:eee:ecolet:v:114:y:2012:i:1:p:26-28
Journal Field
General
Author Count
1
Added to Database
2026-01-29