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“The Deposits Channel of Monetary Policy: A Critical Review” with Professor Rafael Repullo
Tuesday, February 25, 2025, 10:00 am - 12:00 pm
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“The Deposits Channel of Monetary Policy: A Critical Review” with Professor Rafael Repullo
(Part 1 of a two-part Mini Course series, sponsored by the Program for Economic Research)
PER Mini Course Instructor, Professor Rafael Repullo
Professor of Economics at Center For Monetary And Financial Studies
Rafael Repullo, Professor of Economics at the Center for Monetary and Financial Studies (CEMFI), will be visiting Columbia to host a two-part mini course series on the topic of “The Transmission of Monetary Policy when Banks have Market Power.” Please see the detailed information below for further course information and to RSVP.
Mini Course Series, Part 1: “The Deposits Channel of Monetary Policy: A Critical Review“
Date: Tuesday, February 25, 2025
Time: 10:00am – 12:00pm
Location: IAB 1027
Abstract:
Drechsler, Savov, and Schnabl (2017) claim that increases in the monetary policy rate lead to reductions in bank deposits, which account for the subsequent contraction in lending. This paper reviews their theoretical analysis, based on a model of imperfect competition with differentiated deposits, showing that the relationship between the policy rate and the equilibrium amount of deposits is either flat or upward sloping in the relevant range. Moreover, this is consistent with their panel regression results showing that an increase in the policy rate leads to smaller changes in deposits at branches with high market power. These results question the theoretical underpinnings of the “deposits channel” of monetary policy transmission.
Please note that an RSVP is required to attend this event. Please click here to RSVP.
Light refreshments will be served.
Information for the second lecture in the course series (on 2/27/25) can be found here.
1022 International Affairs Building (IAB)
Mail Code 3308
420 West 118th Street
New York, NY 10027
Ph: (212) 854-3680
Fax: (212) 854-0749
Business Hours:
Mon–Fri, 9:00 a.m.–5:00 p.m.
1022 International Affairs Building (IAB)
Mail Code 3308
420 West 118th Street
New York, NY 10027
Ph: (212) 854-3680
Fax: (212) 854-0749
Business Hours:
Mon–Fri, 9:00 a.m.–5:00 p.m.