... translated into bank credit, the chief motivation of our study By effectively constraining new bank lending, a continued weakness in the banking sector following the crisis, tended to offset the impact ... amount of credit supply In other words, after monetary easing, banks’ net worth could increase, causing a decline in the EFP With lower cost of funds, banks are more willing to increase their lending, ... Output In addition to the size of shift in the AD curve, the slope of the AS curve is also vital in determining the output effect of monetary easing As shown in Figure 5, in the declining phase of...