619 r r [ MONETARY POLICY rT ag ‘OTHER ASSET PRICE EFFECTS ‘CREDIT VIEW 2 | traomona. | EXCHANGE | TOBINSG | WEALTH BANK | BALANCE | CASHFLOW JUNANTICIPATED| HOUSEHOLD $2 |"iweresr |< orate | tHeony’ | errecrs | veNoNs | sheer | CHanvel | pricetevel | “LauoITy 25 RATE EFFECTS ON | ‘CHANNEL, (CHANNEL, (CHANNEL, EFFECTS 22 | errects | nerexronts Monetary | Monotary | Monetary | Monetary | Monetary | Monetary | Monetary | Monetary | Monetary policy policy policy policy policy policy policy policy policy Real oat | Stock prices | Stock press | Bankdeposts | Stock pices | Nominal Unantiipated | Stock prices interest rates. | interest rates | | | interstrates | prcelevet Hl | Tobias q | Financia! | Benkloans | Financial exchange wealth Cash ow wealth rate Moratnacas |b | worainazars, adverse | Moralhazard, | adverse selection | adverse | selection | selection | Lending actty| 4 Lansing acti Lending activity a Probability ot financial dstess 4 ge | INvesTMENT INVESTMENT iwestment | investMeNT | INvesTIMENT | INVESTMENT 28 | ResioeNTIAL RESIDENTIAL | ae | RESIDENTIAL go | Housnc HOUSING — “HOUSING, 2 | consumer ‘coNsuMPTION CONSUMER az ‘DURABLE aaa 2@ |exenorure) + EXPENDITURE oF NET EXPORTS = @noss poMesTIC PRODUCT. | FIGURE 3 The Link Bet ey and GOP: Monetary Tansmission Mechanisms