Banco Central de ChileVolume 7: Banking Market Structure and Monetary Policy
Edited by Luis Antonio Ahumada & J. Rodrigo Fuentes - ISBN 956 7421 17 X
This volume contains several macroeconomic and microeconomic works on the subjects of monetary policy transmission and the regulation of the banking industry. The reason to consider both issues in the same volume lies in the fact that some channels whereby monetary policy reaches the real sector hinge on the structure of the banking sector (e.g. barriers to entry, degree of competition, financial taxation) and on some informational distortions typically ascribed to the financial sector (borrower lender relationship, and ownership relations). The book also combines empirical and theoretical contributions on issues that are relevant for Chile and other emerging economies.
A common feature of the findings reported in these works is that regulatory distortions have an important effect on the efficiency and profitability of the banking industry. Whether we measure the spread from intermediation or the interest rates charged on traditional banking activities, the microeconomic structure has an effect on these variables. The natural question to pursue involves the effect of these regulatory and industry conditions on the transmission of monetary policy. Certainly, the evidence presented here provides interesting venues for future research and policy implications.
Comments
“This book is a major contribution to the literature. It comes at the right time, when the areas of monetary policy and banking have matured and produced well-accepted paradigms. The contributions, by highly acknowledged academics and central bankers, make the link between these two areas rigorous by using state-of-the-art tools. It should be an essential reading for all serious scholars interested in central banks’ policy.”
Xavier Freixas, Universitat Pompeu Fabra, España.
“This book is another very interesting conference volume organized by the Central Bank of Chile. Its topics—the transmission of monetary policy and banking industry regulation—are important issues for central banks, policy makers, market participants and, simply, people interested in the workings of monetary policy and the economy. Examples of important questions raised are: How fast and efficient is the transmission of interest rates from monetary policy rates to the rest of the economy? Does financial integration and foreign bank entry reduces economic volatility? The several papers included in the volume—some of them written by leading economists in the field—deal with these essential topics for Chile and other emerging markets.”
Ilan Goldfajn, Pontifical University, Brazil
“This is a timely and highly policy-relevant collection of papers on the role of banks in the economy. It should be of great interest to banking specialists, as well as to those with an interest in broader macroeconomic issues--especially since the authors include some of the leading researchers in both fields.”
Jeremy Stein, Harvard University, USA
Table of Contents
The following documents are in Acrobat format.