Inside the Black Box: The Credit Channel of Monetary Policy Transmission
by Ben S. Bernanke and Mark Gertler · American Economic Association
Journal of Economic Perspectives survey arguing that small policy rate changes produce large real effects because they are amplified through borrowers' balance sheets and bank lending. Sets out the balance-sheet and bank-lending channels and the empirical evidence for each.
More resources on Monetary Policy
Lords of Finance: The Bankers Who Broke the World
Pulitzer-winning history of the four central bankers whose gold-standard decisions in the 1920s helped produce the Great Depression. Gives a concrete sense of how monetary regimes, exchange-rate commitments and policy errors propagate into real economies.
The Economics of Money, Banking and Financial Markets (13th Edition)
The standard university text on money, banking and central banking, by a former Federal Reserve governor. Builds the tools for the term structure, the monetary transmission mechanism, central bank strategy, inflation targeting, and policy conduct at the effective lower bound.
Economics of Money and Banking (Money and Banking Lectures)
Twenty-two lecture modules with slide decks and reading lists developing the 'money view': the hierarchy of money, fed funds, repo, eurodollars, and the central bank as clearinghouse and dealer of last resort. Shows how policy is implemented in money markets.
The Federal Reserve and the Financial Crisis: Chairman Bernanke's College Lecture Series
Four lectures delivered by Ben Bernanke at George Washington University while serving as Fed chair, with on-demand video, transcripts and slides. Traces central banking from its origins to the 2008 response, covering lender-of-last-resort action and asset purchases. Rare combination of top-of-the-field authority and genuine teaching intent.
Money Creation in the Modern Economy
Bank of England Quarterly Bulletin article establishing that commercial bank lending, not multiplied-up reserves, creates most money. Corrects the money-multiplier and loanable-funds stories, explains what actually constrains bank money creation, and situates quantitative easing within it.
Monetary Policy: What Are Its Goals? How Does It Work?
The Federal Reserve's own explainer on the dual mandate, the federal funds rate, forward guidance and large-scale asset purchases. Shows how a policy rate change transmits through credit, asset prices and exchange rates to employment and inflation.