Affiliation:
1. Department of Economics and Business, University of Catania (Catania - Italy) and CESifo Research Network
2. Department of Economics, Management and Quantitative Methods, University of Milan (Milan - Italy)
Abstract
Abstract
We study the evolution of bank deposits in response to monetary policy shocks. The objective is to assess whether a significant deposit channel, that is, an outflow of deposits when monetary conditions tighten (Drechsler et al. 2017), emerges at the macro level. The analysis relies on the estimation of a large Bayesian structural VAR for the USA, and monetary policy shocks are identified with Arias et al. (2019)’s method. We find some elements of the deposit channel, but our results suggest that its relevance for the transmission of monetary policy at the macro level is limited.
Publisher
Oxford University Press (OUP)
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