Abstract

GUTIERREZ RUEDA, Javier  and  MURCIA PABON, Andrés. The role of market structure in monetary policy transmission. Ens. polit. econ. [online]. 2015, vol.33, n.spe76, pp.44-52. ISSN 0120-4483.  https://doi.org/10.1016/j.espe.2014.12.003.

Credit channel efficiency is of high importance for monetary policy pass-through. Literature has shown that certain market structure characteristics have a negative effect on policy transmission. In this paper we aim to measure credit interest rate rigidities as a measure of monetary policy transmission, as well as to identify the effect that market structure has on policy pass-through. The results suggest that policy transmission is incomplete in the short run; while in the long run interest rates fully adjust to changes in the intervention rate. Also, we find that market power increases interest rate rigidities and that the Keywords: largest and more leveraged banks transfer changes in the intervention rate in a less degree.

Keywords : Monetary policy transmission; Market power; Competition.

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