TY  - JOUR
AU  - Ramey,Valerie A.
TI  - How Important is the Credit Channel in the Transmission of Monetary Policy?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 4285
PY  - 1993
Y2  - March 1993
UR  - http://www.nber.org/papers/w4285
L1  - http://www.nber.org/papers/w4285.pdf
N1  - Author contact info:
Valerie A. Ramey
Department of Economics, 0508
University of California, San Diego
9500 Gilman Drive
La Jolla, CA 92093-0508
Tel: 858/534-2388
Fax: 858/534-7040
E-Mail: VRAMEY@UCSD.EDU
M2  - featured in NBER digest on 1993-11-01
AB  - This paper empirically tests the importance of the credit channel in the transmission of monetary policy. Three credit variables are analyzed: total bank loans, bank holdings of securities relative to loans, and the difference in the growth rate of short-term debt of small and large firms. In order to determine the marginal effect of the credit channel over the standard money channel, the significance of the credit variables is studied in a model that includes money (M2). In most cases, the credit variables play an insignificant role in the impact of monetary policy shocks on output.
ER  -