The Connection between Wall Street and Main Street : Measurement and Implications for Monetary Policy

This paper proposes a measure of the extent to which a financial sector is connected to the real economy. The Measure of Connectedness is a measure of the composition of assets, namely the share of credit to the non-financial sectors over the total...

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Bibliographic Details
Main Authors:	Barattieri, Alessandro, Eden, Maya, Stevanovic, Dalibor
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ACCOUNTING ACCOUNTING RULE AMOUNT OF CREDIT ASSET BACKED SECURITIES ASSET CLASS AVAILABILITY OF CREDIT BACKED SECURITIES BALANCE SHEET BALANCE SHEETS BANK LENDING BANK LOANS BANK RUNS BANKING REGULATION BANKING SECTOR BANKING SYSTEM BOND BOND YIELD BORROWER BROKERS BUSINESS CYCLE CAPITAL FLOWS CAPITAL REGULATION COLLATERAL COMMERCIAL BANK COMMERCIAL BANK CREDIT COMMERCIAL BANKING COMMERCIAL BANKS COMMERCIAL BANKS CREDIT COMMERCIAL LOANS COMMODITIES COMMODITY COMMODITY PRICE COMMODITY PRICES COMMON STOCK COMPLEX SECURITIES CONSUMER CREDIT CONSUMER EXPECTATIONS CONSUMER GOODS CONSUMER LOANS CONSUMPTION EXPENDITURE CORPORATE BONDS CREDIT CHAIN CREDIT MARKET CREDIT MARKETS CREDIT OUTSTANDING CREDIT SPREADS CREDIT UNIONS DEBT DEBT OBLIGATIONS DEFLATORS DEPOSIT DEPOSIT INSURANCE DEPOSITORY DEPOSITORY INSTITUTIONS DEPOSITS DEREGULATION DERIVATIVE DERIVATIVES DEVELOPMENT POLICY DIVIDEND DIVIDEND YIELD DURABLE DURABLE GOODS DURABLES EARNINGS ECONOMETRICS ECONOMIC ACTIVITY ECONOMICS ELASTICITY ENDOGENOUS VARIABLES ENFORCEABILITY ENTREPRENEUR ENTREPRENEURS EQUIPMENT EXCHANGE RATE EXPECTED RETURN EXPORTS FEDERAL RESERVE FEDERAL RESERVE BANK FINANCE COMPANIES FINANCIAL CONTAGION FINANCIAL CRISIS FINANCIAL GLOBALIZATION FINANCIAL INNOVATION FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIARY FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL MODERNIZATION FINANCIAL PRODUCTS FINANCIAL SECTOR FINANCIAL SECTORS FINANCIAL STABILITY FINANCIAL SYSTEM FINANCIAL SYSTEMS FLOW OF FUNDS FOREIGN EXCHANGE FUTURE RESEARCH GDP GDP DEFLATOR GLOBALIZATION GROSS DOMESTIC PRODUCT HOLDING HOME MORTGAGES HOUSEHOLDS HUMAN CAPITAL ID ILLIQUID ASSET ILLIQUID ASSETS INFLATION INFLATION RATE INITIAL DEBT INSURANCE INSURANCE COMPANIES INSURANCES INTEREST INCOME INTEREST RATE INTEREST RATE CHANGES INTERNATIONAL BANK INVENTORIES INVESTING INVESTMENT BANKING INVESTMENT DECISION INVESTMENT INCOME INVESTMENT OPPORTUNITIES INVESTMENT OPPORTUNITY INVESTMENT PROJECTS INVESTMENT VEHICLE LENDER LENDERS LENDING DECISION LIFE INSURANCE LIFE INSURANCE COMPANIES LIQUIDITY LOAN LOAN MARKET LOCAL GOVERNMENT M1 M2 MACROECONOMIC VARIABLES MACROECONOMICS MARKET INSTRUMENTS MATURITIES MERGERS MONETARY AUTHORITY MONETARY CONTROL MONETARY POLICY MONETARY SHOCK MONETARY SHOCKS MONETARY TRANSMISSION MONETARY TRANSMISSION MECHANISM MONEY MARKET MORTGAGE MORTGAGE POOLS MORTGAGES MUNICIPAL SECURITIES MUTUAL FUNDS NET WORTH OPEN MARKET OUTPUT PENSION PENSION FUNDS PERFORMANCE MEASURES POLITICAL ECONOMY PRIVATE PENSION REAL GDP REAL GROSS DOMESTIC PRODUCT RECESSION RESERVE RESERVE REQUIREMENT RESERVES RETURN RETURNS RISK PROFILES RISK TAKING SAVINGS SAVINGS INSTITUTIONS SECURITIES SECURITIZATION SHARE OF ASSETS SHARE OF CREDIT SPOT MARKET STOCK PRICE STRUCTURAL CHANGE SYSTEMIC RISK TECHNOLOGICAL CHANGE TRADE CREDIT TRADING TRADITIONAL FINANCIAL INSTITUTIONS TREASURIES TREASURY TREASURY SECURITIES UNEMPLOYMENT UNEMPLOYMENT RATE VALUATION VALUE ADDED VAR MODELS VOLATILITY WAGES WEALTH
Online Access:	http://documents.worldbank.org/curated/en/2013/10/18412872/connection-between-wall-street-main-street-measurement-implications-monetary-policy http://hdl.handle.net/10986/16881