Date of Original Version

7-1995

Type

Response or Comment

Abstract or Description

With commendable timing, academic economists rediscovered bank lending just before the start of the 1990-91 recession. Bernanke (1983) claimed that the shifts in loan supply made a major contribution to the Great Depression of the early 1930s. Bernanke and Blinder (1988) developed a small model interrelating loans, deposits, and output. I refer to this work and the many papers that followed as "the lending view."

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Published In

J. Peek & E.S. Rosengren (eds.) Is Bank Lending Important for the Transmission of Monetary Policy? Federal Reserve Bank of Boston, Conference Series #39.