Monetary Transmission in Brazil: Has the Credit Channel Changed?

Author/Editor: Mercedes Garcia-Escribano
Publication Date: December 17, 2013
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
Summary: This paper investigates the transmission of monetary policy by private banks in Brazil during the recent easing cycle. The analysis presented uses a panel dataset with information on lending by private banks in Brazil and concludes that monetary transmission through lending volumes was not impaired. Instead, the observed diminished lending appears to be related to supply and demand factors, as well as to the rapid expansion of public banks’ lending.
Series: Working Paper No. 13/251
Subject(s): Monetary transmission mechanism | Brazil | Monetary policy | Business cycles | Credit expansion | Banks | Private sector | Loans

Publication Date: December 17, 2013
ISBN/ISSN: 9781484312001/1018-5941 Format: Paper
Stock No: WPIEA2013251 Pages: 20
US$18.00 (Academic Rate:
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