Workings of Westminster

81,25

ISBN:
9781855211841
Dermot Englefield
Ashgate Dartmouth
Hardback
272
1991
The study of the interaction between the financial sector and the real sector of the economy is one of the most recent advances in macroeconomic theory. While mainstream economics assigns a passive role to the financial sector there is a growing body of literature which emphasizes the importance of financial intermediaries in explaining fluctuations and the determination of the process through which monetary policy impulses are transmitted to the rest of the economy. This literature has its origin in the models that rely on asymmetric information to explain imperfections in financial markets and in empirical evidence collected through various econometric techniques and through historical studies. This book surveys the relevant work on the subject evaluates the empirical evidence and the explanatory power of the theories proposed and furnishes new and empirical results.

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