Không hoàn hảo thị trường tín dụng ngăn chặn nền kinh tế đạt được tiềm năng của mình. Bài viết này xem xét sự thay đổi trong chính sách tiền tệ trong sự hiện diện của các khuyết tật này. | TẠP CHÍ PHÁT TRIỂN KH CN TẬP 10 SÓ 08 - 2007 MONETARY POLICY AND CREDIT MARKET IMPERFECTION Luong Tuan Anh Princeton University USA ABSTRACT Credit market imperfection prevents the economyfrom attaining its full potential. This paper examines the change in monetary policy in presence of this imperfection. Using the Corsetti-Pesenti model this study shows that when credit market is not needed or perfect monetary policy should respond fully to productivity shock. However when credit market is in need but imperfect the extent to which monetary policy responds to productivity shock should depend on the degree of credit market imperfection. The less perfect the credit market the less the response. This study also shows that credit market imperfection might not be sustainable which calls for government interventions. Keywords Monetary Policy Credit market Imperfection Productivity shock. 1. INTRODUCTION Credit market imperfection has been an issue in almost every country. It might arise from asymmetric information banks perceive incorrectly the risk exposure of firms hence can not fully provide credit to them. The severeness might however vary across countries. Its damages are various preventing human capital investment Lambertini 2001 Tesfatsion and Orazem 1997 Shea 1997 increasing inequality through distribution effect Reto and Oechslin 2003 Iradian 2005 leading to high unemployment Acemoglu 2000 Wasmer and Weil 2000 or preventing firms from switching to more productive and capital-intensive technology Horii Ohdoi and Yanamoto 2005 . Surprisingly the literature of credit market imperfection does not examine quantitatively the effect of this imperfection on the number of firms in the economy. Asymmetric information might lead to quantitative constraint in credit market Stiglitz and Weiss 1981 Jaffe and Russel 1976 . This credit constraint will reduce the number of firms therefore affects output. Our paper aims to close this gap via the price of asset. It extends the .
