BIS paper studies financial transmission channels
A working paper, published by the Bank for International Settlements on May 15, presents the findings of its Research Task Force – Transmission Channels.
The paper reviews the research of a large international team across four main areas – the interactions between banks and the real economy; the costs and benefits of liquidity regulation; bank risk-taking and monetary policy; and asset price bubbles and cyclical properties of regulation.
The team argues that the financial sector represents an
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