【正文】
Inside the Black Box: The Credit Channel of Moary Policy Transmission Bernake and Gertler Introduction ? Why should actions taken by the central bank have any effect on the external finance premium in credit markets? ? Two possibilities: a) Balance sheet channel: effect of moary policy on the balance sheet and ine statements of borrowers. b) Bank lending channel: effect of moary policy on the supply of loans by financial institutions. Evidence from Vector Autoregressions (VAR’s) To evaluate the effect of a tightening of moary policy on the economy, the authors estimate a series of VAR’s, using the federal funds rate as a proxy for the stance of moary policy. It is assumed that the shock to the federal funds rate represents an unanticipated change in moary policy.