Monetary Transmission in Brazil: Has the Credit Channel Changed?
21 Pages Posted: 20 Jan 2014
Date Written: December 2013
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.
Keywords: Monetary transmission mechanism, Brazil, Monetary policy, Business cycles, Credit expansion, Banks, Private sector, Loans, credit growth, private banks, central bank, reserve requirements, monetary fund, transmission of monetary policy, money supply, central bank monetary policy, private credit
JEL Classification: E40, E43, E51, G21
Suggested Citation: Suggested Citation