Scholarlink

<p>This paper investigates whether financial risk can lower rather than raise business lending rates, using U.S. data from 1998 to 2022, including the zero-lower-bound (ZLB) period. Within a loanable-funds framework, the autoregressive distributed lag (ARDL) estimates of steady-state multipliers, cointegration relationships, and asymmetric adjustments reveal a negative risk-rate relationship: heightened financial risk reduces investment more than saving, lowering equilibrium lending rates even as risk premiums rise. These results align with financial-friction and low-rate theories, including credit-rationing, financial-accelerator, and reversal-rate mechanisms. The findings highlight the limits of monetary easing in low-rate environments and call for macroprudential measures that mitigate investment risk and strengthen credit transmission.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

Are credit-market interest rates downwardly rigid in their risk passthrough?

  • 期刊论文

  • 发表日期：

    2026年7月27日

查看全文
  • Ying Wu

摘要

This paper investigates whether financial risk can lower rather than raise business lending rates, using U.S. data from 1998 to 2022, including the zero-lower-bound (ZLB) period. Within a loanable-funds framework, the autoregressive distributed lag (ARDL) estimates of steady-state multipliers, cointegration relationships, and asymmetric adjustments reveal a negative risk-rate relationship: heightened financial risk reduces investment more than saving, lowering equilibrium lending rates even as risk premiums rise. These results align with financial-friction and low-rate theories, including credit-rationing, financial-accelerator, and reversal-rate mechanisms. The findings highlight the limits of monetary easing in low-rate environments and call for macroprudential measures that mitigate investment risk and strengthen credit transmission.