Monetary Economics

  1. The Transmission Mechanisms of Monetary Policy
    1. Traditional Interest Rate Channels
      1. Effect on Investment
        1. Cost of Borrowing
          1. Real Interest Rates
            1. Risk Premiums
            2. Business Investment Decisions
              1. Net Present Value
                1. Hurdle Rates
                  1. Investment Sensitivity
                  2. Residential Investment
                    1. Mortgage Rates
                      1. Housing Demand
                        1. Construction Activity
                      2. Effect on Consumption
                        1. Consumer Credit
                          1. Credit Card Rates
                            1. Auto Loans
                              1. Personal Loans
                              2. Durable Goods Purchases
                                1. Interest Rate Sensitivity
                                  1. Financing Decisions
                                  2. Intertemporal Substitution
                                    1. Saving vs. Consumption
                                      1. Interest Rate Effects
                                  3. Other Asset Price Channels
                                    1. Exchange Rate Channel
                                      1. Currency Depreciation/Appreciation
                                        1. Interest Rate Differentials
                                          1. Capital Flows
                                          2. Impact on Net Exports
                                            1. Export Competitiveness
                                              1. Import Costs
                                                1. Trade Balance Effects
                                                2. J-Curve Effects
                                                  1. Short-Run vs. Long-Run
                                                    1. Price vs. Volume Effects
                                                  2. Tobin's q Theory
                                                    1. Market Value of Firms vs. Replacement Cost
                                                      1. Stock Market Valuations
                                                        1. Capital Costs
                                                        2. Investment Implications
                                                          1. q Ratio and Investment
                                                            1. Monetary Policy Effects
                                                          2. Wealth Effects on Consumption
                                                            1. Asset Prices and Household Wealth
                                                              1. Stock Market Wealth
                                                                1. Housing Wealth
                                                                  1. Pension Wealth
                                                                  2. Marginal Propensity to Consume
                                                                    1. Wealth Effects Magnitude
                                                                      1. Permanent vs. Transitory Changes
                                                                      2. Life-Cycle Hypothesis
                                                                        1. Consumption Smoothing
                                                                    2. The Credit View
                                                                      1. The Bank Lending Channel
                                                                        1. Bank Balance Sheets
                                                                          1. Capital Constraints
                                                                            1. Regulatory Requirements
                                                                              1. Funding Costs
                                                                              2. Lending Standards
                                                                                1. Credit Availability
                                                                                  1. Loan Terms and Conditions
                                                                                    1. Risk Assessment
                                                                                    2. Bank-Dependent Borrowers
                                                                                      1. Small and Medium Enterprises
                                                                                        1. Information-Sensitive Lending
                                                                                      2. The Balance Sheet Channel
                                                                                        1. Borrower Net Worth
                                                                                          1. Collateral Values
                                                                                            1. Debt-to-Equity Ratios
                                                                                              1. Financial Accelerator
                                                                                              2. External Finance Premium
                                                                                                1. Agency Costs
                                                                                                  1. Monitoring Costs
                                                                                                    1. Risk Premiums
                                                                                                    2. Procyclical Effects
                                                                                                      1. Asset Price Cycles
                                                                                                        1. Leverage Cycles
                                                                                                      2. The Cash Flow Channel
                                                                                                        1. Interest Payments and Cash Flow
                                                                                                          1. Debt Service Burden
                                                                                                            1. Variable Rate Debt
                                                                                                            2. Impact on Borrower Solvency
                                                                                                              1. Default Risk
                                                                                                                1. Refinancing Risk
                                                                                                                  1. Investment Capacity
                                                                                                                2. The Household Liquidity Effects
                                                                                                                  1. Access to Credit
                                                                                                                    1. Credit Constraints
                                                                                                                      1. Borrowing Capacity
                                                                                                                      2. Consumption Smoothing
                                                                                                                        1. Liquidity-Constrained Households
                                                                                                                          1. Precautionary Saving
                                                                                                                      3. The Role of Expectations
                                                                                                                        1. Expectations and Policy Effectiveness
                                                                                                                          1. Rational Expectations
                                                                                                                            1. Adaptive Expectations
                                                                                                                              1. Policy Credibility
                                                                                                                              2. Forward Guidance and Market Reactions
                                                                                                                                1. Communication Effects
                                                                                                                                  1. Expectation Management
                                                                                                                                    1. Market Volatility

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                                                                                                                                4. Monetary Theory: The Demand for Money and Interest Rates

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                                                                                                                                6. Money, Inflation, and Output