PSL Quarterly Review (Oct 2013)
Credit channels in Europe: a cross-country investigation
Abstract
The work provides an economic analysis of the monetary transmission mechanism in Europe. The author reviews the literature on the money and credit view before describing cross-country differences in credit channel indicators and examining the existence of credit channels by distinguishing between households and firms. The relative importance of a bank lending and balance sheet channel is discussed by assessing impulse response functions from a vector error correction model. JEL Codes: E51
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