State-run Banks, Money Growth, and the Real Economy

Previously circulated as "State-controlled Banks and the Effectiveness of Monetary Policy." We are very grateful for helpful comments from the associate editor and two anonymous referees, seminar participants at Asian Bureau of Finance and Economics Research, Bank of Canada, the Canadian Economic Association, “Bank of Canada Lecture” in Vancouver, George Washington University, Hebrew University, Monetary Authority of Hong Kong, Monetary Authority of Singapore, National University of Singapore, NBER-EASE in Tokyo, the NBER Summer Institute Capital Markets and the Economy program, Renmin University, Singapore Management University, University of Alberta, Stanford University, University of Oregon, University of Southern California, University of Washington, and for specific comments from Paul Beaudry, Marianne Bertrand, Bernard Black, Robert M. Bushman, Murillo Campello, Zhi Da, Mara Faccio, Ben Friedman, Ross Levine, Greg Mankiw, John Matsusaka, Morten Nielsen, Ali Ozdagli, Amiyatosh Purnanandam, Andrew Rose, Stefano Rossi, Lawrence Schembri, Etsuro Shioji, Andrei Shleifer, Krishnamurthy Subramanian, Chalongphob Sussangkarn, and Jin Xu. We thank William L. Megginson for sharing his privatization data. We thank Timothy Trombley for superb research assistance. Morck gratefully acknowledge funding from the SSHRC and the Bank of Canada. Yavuz gratefully acknowledges support from a CIBER Research Grant. These are the views of the authors and may not reflect those of the Bank of Canada. These are the views of the authors and may not reflect those of the Bank of Canada or the National Bureau of Economic Research.

• April 23, 2013
• January 19, 2016