This chapter gives a fascinating overview of a very dynamic field of empirical research to which Glenn Hubbard himself has contributed a lot in recent years. As it is too rich to comment on all of aspects, I will concentrate my comments on two points, the importance of financial market imperfections for macroeconomic modeling, and the role of financial innovation in the transmission of monetary policy.
KeywordsInterest Rate Monetary Policy Bank Loan Financial Innovation Monetary Policy Shock
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- Fender, I. 2000. Financial Derivatives and Monetary Policy Transmission. PhD dissertation, ZEI University of Bonn.Google Scholar