[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/bis/biswps/25.html
   My bibliography  Save this paper

A survey of non-financial sector balance sheets in industialised countries: implications for the monetary policy transmission mechanism

Author

Listed:
  • J T Kneeshaw
Abstract
This paper identifies the similarities and differences in the balance sheets of the household and business sectors in 14 industrialised countries with a view to identifying their implications for the transmission mechanism of monetary policy. The analysis draws on the central bank responses to a detailed questionnaire and other available information. Differences in the size and sectoral pattern of potential income and wealth effects are highlighted. The paper is part of a broader BIS cross-country study on the impact of financial structure on the transmission mechanism.

Suggested Citation

  • J T Kneeshaw, 1995. "A survey of non-financial sector balance sheets in industialised countries: implications for the monetary policy transmission mechanism," BIS Working Papers 25, Bank for International Settlements.
    • Handle: RePEc:bis:biswps:25
    as

    Download full text from publisher

    File URL: http://www.bis.org/publ/work25.pdf
    File Function: Full PDF document
    Download Restriction: no
    File URL: http://www.bis.org/publ/work25.htm
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Chirinko, Robert S, 1993. "Business Fixed Investment Spending: Modeling Strategies, Empirical Results, and Policy Implications," Journal of Economic Literature, American Economic Association, vol. 31(4), pages 1875-1911, December.
    2. Mark Gertler & Simon Gilchrist, 1994. "Monetary Policy, Business Cycles, and the Behavior of Small Manufacturing Firms," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(2), pages 309-340.
    3. Beverly Hirtle & Jeanette Kelleher, 1990. "Financial market evolution and the interest sensitivity of output," Quarterly Review, Federal Reserve Bank of New York, vol. 15(Sum), pages 56-70.
    4. Barry Bosworth, 1989. "Institutional Change and the Efficacy of Monetary Policy," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 20(1), pages 77-124.
    5. Daniel Racette & Jacques Raynauld & Christian Sigouin, "undated". "An Up-to-Date and Improved BVAR Model of the Canadian Economy," Staff Working Papers 94-4, Bank of Canada.
    6. Robert S. Chirinko, 1992. "Business Fixed Investment Spending: A Critical survey of Modeling Strategies, Empirical Results, and Policy Implications," Working Papers 9213, Harris School of Public Policy Studies, University of Chicago.
    7. Bruce Kasman & Anthony P. Rodrigues, 1991. "Financial liberalization and monetary control in Japan," Quarterly Review, Federal Reserve Bank of New York, vol. 16(Aut), pages 28-46.
    8. Jean Helwege & J. Nellie Liang, 1994. "Is there a pecking order? Evidence from a panel of IPO firms," Finance and Economics Discussion Series 94-22, Board of Governors of the Federal Reserve System (U.S.).
    9. Yoshio Suzuki & Akio Kuroda & Hiromichi Shirakawa, 1988. "Monetary Control Mechanism in Japan," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 6(2), pages 1-27, November.
    10. Howard Howe & Charles Pigott, 1991. "Determinants of long-term interest rates: an empirical study of several industrial countries," Quarterly Review, Federal Reserve Bank of New York, vol. 16(Win), pages 12-28.
    11. Keith B. Church & Joanne E. Sault & Silvia Sgherri & Kenneth F. Wallis, 2000. "Comparative Properties of Models of the UK Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 171(1), pages 106-122, January.
    12. Adrian Blundell-Wignall & Frank Browne & Paolo Manasse, 1990. "Monetary Policy in the Wake of Financial Liberalisation," OECD Economics Department Working Papers 77, OECD Publishing.
    13. Issing, Otmar, 1992. "Theoretische und empirische Grundlagen der Geldmengenpolitik der Deutschen Bundesbank," Wirtschaftsdienst – Zeitschrift für Wirtschaftspolitik (1949 - 2007), ZBW - Leibniz Information Centre for Economics, vol. 72(10), pages 537-548.
    14. Mark Gertler & R. Glenn Hubbard & Anil Kashyap, 1991. "Interest Rate Spreads, Credit Constraints, and Investment Fluctuations: An Empirical Investigation," NBER Chapters, in: Financial Markets and Financial Crises, pages 11-32, National Bureau of Economic Research, Inc.
    15. Adrian Blundell-Wignall & Frank Browne, 1991. "Macroeconomic Consequences of Financial Liberalisation: A Summary Report," OECD Economics Department Working Papers 98, OECD Publishing.
    16. Richard Cantor, 1990. "Effects of leverage on corporate investment and hiring decisions," Quarterly Review, Federal Reserve Bank of New York, vol. 15(Sum), pages 31-41.
    17. Jean-Claude Chouraqui & Michael Driscoll & Marc-Olivier Strauss-Kahn, 1988. "The Effects of Monetary Policy on the Real Sector: An Overview of Empirical Evidence for Selected OECD Economies," OECD Economics Department Working Papers 51, OECD Publishing.
    18. Keith B. Church & Joanne E. Sault & Silvia Sgherri & Kenneth F. Wallis, 2000. "Comparative Properties of Models of the UK Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 171(1), pages 106-122, January.
    19. Chirinko, Robert S & Schaller, Huntley, 1995. "Why Does Liquidity Matter in Investment Equations?," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 27(2), pages 527-548, May.
    20. Ronald Johnson, 1991. "The bank credit \"crumble.\"," Quarterly Review, Federal Reserve Bank of New York, vol. 16(Sum), pages 40-51.
    21. Geoffrey Shuetrim & Philip Lowe & Steve Morling, 1993. "The Determinants of Corporate Leverage: A Panel Data Analysis," RBA Research Discussion Papers rdp9313, Reserve Bank of Australia.
    22. Ms. Angeliki Kourelis & Mr. Carlo Cottarelli, 1994. "Financial Structure, Bank Lending Rates, and the Transmission Mechanism of Monetary Policy," IMF Working Papers 1994/039, International Monetary Fund.
    23. Sensenbrenner, Gabriel, 1991. "Aggregate investment, the stock market, and the Q model : Robust results for six OECD countries," European Economic Review, Elsevier, vol. 35(4), pages 769-825, May.
    24. Alan S. Blinder & Louis J. Maccini, 1991. "Taking Stock: A Critical Assessment of Recent Research on Inventories," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 73-96, Winter.
    25. Angeloni, Ignazio & Prati, Alessandro, 1993. "Liquidity Effects and the Determinants of Short-term Interest Rates in Italy (1991-92)," CEPR Discussion Papers 788, C.E.P.R. Discussion Papers.
    26. John C. Allen, 1990. "Adjustable-rate mortgages and the demand for mortgage credit," Working Paper Series / Economic Activity Section 112, Board of Governors of the Federal Reserve System (U.S.).
    27. Dale, Spencer & Haldane, Andrew G, 1998. "Interest Rate Control in a Model of Monetary Policy," The Manchester School of Economic & Social Studies, University of Manchester, vol. 66(3), pages 354-375, June.
    28. Glenn B. Canner & Thomas A. Durkin & Charles A. Luckett, 1990. "Mortgage refinancing," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Aug, pages 604-612.
    29. Goodhart, Charles, 1986. "Financial Innovation and Monetary Control," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 2(4), pages 79-102, Winter.
    30. Peter Isard, 1987. "Lessons from Empirical Models of Exchange Rates (Enseignements tirés des modèles empiriques de comportement des taux de change) (Enseñanzas que nos brindan los modelos empíricos de tipos de cambio," IMF Staff Papers, Palgrave Macmillan, vol. 34(1), pages 1-28, March.
    31. Christopher D. Carroll & Lawrence H. Summers, 1991. "Consumption Growth Parallels Income Growth: Some New Evidence," NBER Chapters, in: National Saving and Economic Performance, pages 305-348, National Bureau of Economic Research, Inc.
    32. Karen Mills & Steven Morling & Warren Tease, 1994. "The Influence of Financial Factors on Corporate Investment," RBA Research Discussion Papers rdp9402, Reserve Bank of Australia.
    33. Tony Richards & Glenn Stevens, 1987. "Estimating the Inflationary Effects of Depreciation," RBA Research Discussion Papers rdp8713, Reserve Bank of Australia.
    34. repec:sae:niesru:v:145:y::i:1:p:87-107 is not listed on IDEAS
    35. Thomas Egebo & Ian Lienert, 1988. "Modelling Housing Investment for Seven Major OECD Countries," OECD Economics Department Working Papers 63, OECD Publishing.
    36. Goodhart, Charles, 1989. "The Conduct of Monetary Policy," Economic Journal, Royal Economic Society, vol. 99(396), pages 293-346, June.
    37. Joanna Paisley, 1994. "A Model of Building Society Interest Rate Setting," Bank of England working papers 22, Bank of England.
    38. Michael Driscoll, 1991. "Deregulation, Credit Rationing, Financial Fragility and Economic Performance," OECD Economics Department Working Papers 97, OECD Publishing.
    39. Angelini, I. & Prati, A., 1993. "Liquidity Effects and the Determinants of Short-Term Interest Rates in Italy," Papers 199, Banca Italia - Servizio di Studi.
    40. Jeffery W. Gunther, 1994. "Changing channels of monetary transmission: evidence from the home mortgage market," Financial Industry Studies Working Paper 94-4, Federal Reserve Bank of Dallas.
    41. Artus, P., 1994. "Amplification de la recession par les comportements des entreprises et taux d'interest reels: Le cas de la France 1990-1993," Papers 1994-08-e, Caisse des Depots et Consignations - Cahiers de recherche.
    42. Adrian Blundell-Wignall & Frank Browne, 1991. "Increasing Financial Market Integration, Real Exchange Rates and Macroeconomic Adjustment," OECD Economics Department Working Papers 96, OECD Publishing.
    43. Craig S. Hakkio, 1992. "Monetary transmission channels in major foreign industrial countries: a comment," Research Working Paper 92-12, Federal Reserve Bank of Kansas City.
    44. Philip Lowe & Thomas Rohling, 1993. "Agency Costs, Balance Sheets and the Business Cycle," RBA Research Discussion Papers rdp9311, Reserve Bank of Australia.
    45. Dale, Spencer & Haldane, Andrew G., 1995. "Interest rates and the channels of monetary transmission: Some sectoral estimates," European Economic Review, Elsevier, vol. 39(9), pages 1611-1626, December.
    46. Paul Bennett, 1990. "Evidence on the influence of financial changes on interest rates and monetary policy," Research Paper 9007, Federal Reserve Bank of New York.
    47. Robert B. Kahn & Linda S. Kole, 1993. "Monetary transmission channels in major foreign industrial countries," Proceedings, Board of Governors of the Federal Reserve System (U.S.).
    48. Kumiharu Shigehara, 1991. "Japan's Experience with Use of Monetary Policy and the Process of Liberalization," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 9(1), pages 1-21, March.
    49. Carlo Cottarelli & Angeliki Kourelis, 1994. "Financial Structure, Bank Lending Rates, and the Transmission Mechanism of Monetary Policy," IMF Staff Papers, Palgrave Macmillan, vol. 41(4), pages 587-623, December.
    50. Marcus Miller & Paul Weller, 1991. "Financial Liberalisation, Asset Prices and Exchange Rates," OECD Economics Department Working Papers 95, OECD Publishing.
    51. Paul Bennett, 1990. "The influence of financial changes on interest rates and monetary policy: a review of recent evidence," Quarterly Review, Federal Reserve Bank of New York, vol. 15(Sum), pages 8-30.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Maclennan, Duncan & Muellbauer, John & Stephens, Mark, 1998. "Asymmetries in Housing and Financial Market Institutions and EMU," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 14(3), pages 54-80, Autumn.
    2. Rivaud-Danset, Dorothée & Oheix, Valérie, 2005. "Do corporate financial patterns in European countries converge and testitfy for disintermediation?," MPRA Paper 40, University Library of Munich, Germany.
    3. Ellingsen, Tore & Holden, Steinar, 1997. "Indebtedness and Unemployment: A Durable Relationship," SSE/EFI Working Paper Series in Economics and Finance 186, Stockholm School of Economics.
    4. Maria Caporale, Guglielmo & M. Soliman, Alaa, 2009. "The Asymmetric Effects of a Common Monetary Policy in Europe," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 24, pages 455-475.
    5. B. Scholtens, 1997. "Bank- and market-oriented financial systems: fact or fiction?," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 50(202), pages 301-323.
    6. Ono, Masanori, 2001. "Determinants of Trade Credit in the Japanese Manufacturing Sector," Journal of the Japanese and International Economies, Elsevier, vol. 15(2), pages 160-177, June.
    7. Fernando Barran & Virginie Coudert & Benoît Mojon, 1996. "The Transmission of Monetary Policy in the European Countries," Working Papers 1996-03, CEPII research center.
    8. Daisuke Tsuruta, 2013. "Credit Contagion and Trade Credit: Evidence from Small Business Data in Japan," Asian Economic Journal, East Asian Economic Association, vol. 27(4), pages 341-367, December.
    9. Virginie Coudert & Benoît Mojon, 1997. "Asymétries financières et transmission de la politique monétaire en Europe," Économie et Prévision, Programme National Persée, vol. 128(2), pages 41-60.
    10. Giuseppe Marotta, 1997. "Does trade credit redistribution thwart monetary policy? Evidence from Italy," Applied Economics, Taylor & Francis Journals, vol. 29(12), pages 1619-1629.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Giuseppe Cinquegrana, 2014. "Effetti differenziali delle politiche monetarie sugli investimenti delle imprese industriali italiane: un?analisi con metodologia panel," RIVISTA DI ECONOMIA E STATISTICA DEL TERRITORIO, FrancoAngeli Editore, vol. 2014(3), pages 40-78.
    2. Robert S. Chirinko & Steven M. Fazzari & Andrew P. Meyer, 1996. "What Do Micro Data Reveal About the User Cost Elasticity?: New Evidence on the Responsiveness of Business Capital Formation," Economics Working Paper Archive wp_175, Levy Economics Institute.
    3. Kuppers, Markus, 2001. "Curtailing the black box: German banking groups in the transmission of monetary policy," European Economic Review, Elsevier, vol. 45(10), pages 1907-1930, December.
    4. Eugenio Gaiotti & Andrea Generale, 2002. "Does Monetary Policy Have Asymmetric Effects? A Look at the Investment Decisions of Italian Firms," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 61(1), pages 29-59, June.
    5. Vivek Ghosal & Prakash Loungani, 1996. "Firm size and the impact of profit-margin uncertainty on investment: do financing constraints play a role?," International Finance Discussion Papers 557, Board of Governors of the Federal Reserve System (U.S.).
    6. Ben S. Bernanke & Mark Gertler, 1995. "Inside the Black Box: The Credit Channel of Monetary Policy Transmission," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 27-48, Fall.
    7. Stijn Claessens & M Ayhan Kose, 2018. "Frontiers of macrofinancial linkages," BIS Papers, Bank for International Settlements, number 95.
    8. Gabriel A. Giménez Roche, 2016. "Entrepreneurial ignition of the business cycle: The corporate finance of malinvestment," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 29(3), pages 253-276, September.
    9. Chirinko, Robert S. & Fazzari, Steven M. & Meyer, Andrew P., 1999. "How responsive is business capital formation to its user cost?: An exploration with micro data," Journal of Public Economics, Elsevier, vol. 74(1), pages 53-80, October.
    10. Menzie D. Chinn & Michael P. Dooley, 1997. "Asia Pacific Capital Markets: Integration and Implications for Economic Activity," NBER Chapters, in: Regionalism versus Multilateral Trade Arrangements, pages 169-202, National Bureau of Economic Research, Inc.
    11. Virginie Coudert & Benoît Mojon, 1997. "Asymétries financières et transmission de la politique monétaire en Europe," Économie et Prévision, Programme National Persée, vol. 128(2), pages 41-60.
    12. Matteo Iacoviello & Fabio Schiantarelli & Scott Schuh, 2011. "Input And Output Inventories In General Equilibrium," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 52(4), pages 1179-1213, November.
    13. repec:hal:spmain:info:hdl:2441/5221 is not listed on IDEAS
    14. Jean-Bernard Chatelain, 2002. "Structural modelling of investment and financial constraints: Where do we stand?," Working Paper Research 28, National Bank of Belgium.
    15. Fabio Busetti & Claire Giordano & Giordano Zevi, 2016. "The Drivers of Italy’s Investment Slump During the Double Recession," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 2(2), pages 143-165, July.
    16. A.H. Ahmad & Nusrate Aziz & Shahina Rummun, 2013. "Interest Rate Pass-Through in the UK: Has the Transmission Mechanism Changed During the Financial Crisis?," Economic Issues Journal Articles, Economic Issues, vol. 18(1), pages 17-38, March.
    17. Bernanke, Ben & Gertler, Mark & Gilchrist, Simon, 1996. "The Financial Accelerator and the Flight to Quality," The Review of Economics and Statistics, MIT Press, vol. 78(1), pages 1-15, February.
    18. Enrico Sergio Levrero, 2021. "Estimates of the Natural Rate of Interest and the Stance of Monetary Policies: A Critical Assessment," International Journal of Political Economy, Taylor & Francis Journals, vol. 50(1), pages 5-27, February.
    19. Jean-Bernard Chatelain, 2003. "Structural modelling of financial constraints on investment: where do we stand?," Chapters, in: Paul Butzen & Catherine Fuss (ed.), Firms’ Investment and Finance Decisions, chapter 2, pages 40-58, Edward Elgar Publishing.
    20. John K. Ashton, 2007. "Synchronisation and Staggering of Deposit Account Interest Rate Changes," Working Papers 07-14, Centre for Competition Policy, University of East Anglia.
    21. Santiago Villegas Salazar, 2009. "Evidencia del canal de la hoja de balance a través de la inversión de las empresas colombianas (1995-2007)," Revista ESPE - Ensayos Sobre Política Económica, Banco de la República, vol. 27(60), pages 168-215, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bis:biswps:25. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Martin Fessler (email available below). General contact details of provider: https://edirc.repec.org/data/bisssch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.