Carlo A. Favero
IGIER - Università Commerciale "Luigi Bocconi"
(Milano) and CEPR (London)
in G. Vaciago (a cura di), Moneta e Finanza,
Il Mulino, Bologna, 1998, p.165-223
Collana della Società Italiana degli
Economisti
Abstract
This paper provides a systematic assessment of the empirical literature on the relevance of the credit view of the monetary transmission mechanism that has recently attracted a lot of attention especialy in the United States. First, a theoretical framework for the credit view is constructed with the aid of a simple macroeconomic model and empirical implications of the theory are derived. The available empirical results for the US are then evaluated from the methodological and economic point of view. Finally, it is noted that Italy may constitute an interesting case study, given some characteristics of the Italian financial system. Some preliminary results on Italian macroeconomic time series are then presented and evaluated. Throughout the paper, particular attention is devoted to the econometric methodology, which is described in detail in the appendix. The focus is on the two problems of cointegration and identification, which are essential to the correct interpretation of the evidence.