Financial-Sector Shocks in a Credit-View Model
Burton A. AbramsAbstract
A variation of the Bernanke-Blinder credit-view model reveals that holding constant the money supply following various financial-sector shocks, including an autonomous drop in the money multiplier, is insufficient to prevent aggregate demand from decreasing.
JEL Codes: F41, E51
Keywords: credit-view model, monetary policy, money-supply model