Credit Markets and the Propagation of Monetary Policy Shocks

Symbol

Meaning

SS1

SS2

Data*

h/b

Reserves over government bonds

0.10

0.11

0.12

h

Reserves over assets

0.02

0.02

0.03

b

Government bonds over assets

0.23

0.21

0.24

RD

Interest on deposits (percent)

1.30

1.28

1.17

R^L

Interest on loans (percent)

1.39

1.37

1.83

^p

Normalized price level

0.07

0.08

-

μ

Inflation (percent)

0.32

0.29

0.54

K/Y

Productive capital over output

9.61

9.65

12.2

K/d

Capacity utilization rate

0.75

0.77

0.82

H/(PY)

Reserves over nominal output

0.30

0.29

0.24

B/(PY )

Gov. bonds over nominal output

2.98

2.64

1.94

Share of entrepreneurs

0.12

0.12

0.10

Share of constrained entrepreneurs

0.23

0.21

-

Gini wealth

0.63

0.63

0.77

Gini income

0.27

0.26

0.45

* See Appendix A for a description of the data.