Commercial bank's lending behavior and macroeconomic performance

The purpose of this study is to examine relationships between commercial bank's lending behavior and economic performances by using a Tobin-type general equilibrium approach. Following post-Keynesian credit view, our model assumes money and bonds are perfect substitutes. And then loan market is included into conventional IS-LM model. By excluding extreme cases, the preliminary attempts show that real effects are possible in the short run. In the long run, however, there seems no specific final equilibrium when the initial equilibrium is disturbed in the general equilibrium setting.