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Journal articles (1975), Revue Economique, 26 (4), pp. 553

La formation du taux d'intérêt et le marché des crédits bancaires français : Une étude théorique et économétrique

This paper presents a model of the loan market whose objective is to study interest rate formation in France. The influence of policy instruments on the behavior of the banking system and the public (households + firms) is analysed by developing hypotheses as to supply and demand for loans. Hence, the efficiency of policy instruments to act upon interest rate movements can be studied within a solid analytical framework. The structure of the model is developed after a rapid review of the literature on monetary mecanisms. The hypotheses upon which the model is constructed are then used to pursue a theoretical analysis of interest rate formation. Afterwards, the model is subjected to the empirical test so as to evaluate the validity of the hypotheses. These results are then utilized to obtain empirical estimations as to the impact of policy instruments upon interest rate movements. The theoretical analysis, and its empirical counterpart, permits the drawing of crucial theoretical and empirical implications of great concern for economists, central bankers, and commercial bankers. Link to the article

FOURÇANS, A. (1975). La formation du taux d'intérêt et le marché des crédits bancaires français : Une étude théorique et économétrique. Revue Economique, 26(4), pp. 553.