The role of financial intermediaries in monetary policy transmission

T.H.L. Beck, A. Colciago, D. Pfajfar

Research output: Contribution to journalArticleScientificpeer-review

29 Citations (Scopus)


The recent financial crisis has stimulated theoretical and empirical research on the propagation mechanisms underlying business cycles, in particular on the role of financial frictions. Many issues concerning the interactions between banking and monetary policy forced policy makers to redefine economic policies, and motivated macroeconomists to focus on the implications of financial intermediation constraints for asset price fluctuations, the behavior of non-financial firms, households, governments and in turn for real macroeconomic performance. This paper surveys research on the role of financial intermediaries and financial frictions in the transmission of monetary policy and discusses how to design both the new banking regulatory and supervisory structures and monetary policy in order to stabilize the economy. It also serves as an introduction to this special issue.
Original languageEnglish
Pages (from-to)1-11
JournalJournal of Economic Dynamics & Control
Publication statusPublished - Jun 2014


  • Financial intermediation
  • DSGE models
  • financial frictions


Dive into the research topics of 'The role of financial intermediaries in monetary policy transmission'. Together they form a unique fingerprint.

Cite this