TY  - JOUR
AU  - Grilli,Vittorio
AU  - Roubini,Nouriel
TI  - Financial Intermediation and Monetary Policies in the World Economy
JF  - National Bureau of Economic Research Technical Working Paper Series
VL  - No. 104
PY  - 1991
Y2  - May 1991
UR  - http://www.nber.org/papers/t0104
L1  - http://www.nber.org/papers/t0104.pdf
N1  - Author contact info:
Nouriel Roubini
Department of Economics, KMC 7-83
Stern School of Business, New York University
44 West 4th Street
New York, NY  10012
Tel: 212/998-0886
Fax: 212/995-4218
E-Mail: nroubini@stern.nyu.edu
AB  - In this paper we investigate the role of credit institutions in transmitting monetary shocks to the domestic economy and to the rest of the world output. In modeling the monetary and financial sector of the economy we distinguish between monetary injections via lump-sum transfers to individuals and those via increased credit to the commercial banking sector in the form of discount window operations. Appropriately, we distinguish between the discount rate of the central bank and the lending and borrowing interest rates of commercial banks, which, we assume, are also subject to reserves requirements. We find that a steady state increase in monetary injections via increases in domestic credit leads to an increase in domestic output. On the other hand, we find that an increase in the steady state level of monetary transfers reduces the level of output.
ER  -