Financial Dampening
提出“金融抑制”机制，即银行收缩贷款会削弱货币政策效果。利用银行控股公司内部资本市场的工具变量方法，发现收缩贷款的银行对降息反应更弱，且这种效应会持续影响当地就业，解释金融危机后复苏缓慢的原因。
Abstract We propose a novel mechanism, “financial dampening,” whereby loan retrenchment by banks attenuates the effectiveness of monetary policy. The theory unifies an endogenous supply of illiquid local loans and risk sharing among subsidiaries of bank holding companies (BHCs). We derive an instrumental variable (IV) strategy that separates supply‐driven loan retrenchment from local loan demand by exploiting linkages through BHC internal capital markets across spatially separate BHC member banks. We estimate that retrenching banks increase loan supply substantially less in response to exogenous monetary policy rate reductions. This relative decline has persistent effects on local employment and thus provides a rationale for slow recoveries from financial distress.