Abstract

RESTREPO, María Isabel. The Banking Credit Channel in Colombia: 1995-2005. An Approach using Threshold Models. Lect. Econ. [online]. 2007, n.67, pp.99-118. ISSN 0120-2596.

The Bank Credit Channel, which amplifies the effects of the traditional channel of monetary policy, emphasizes on the structure and frictions of financial markets as determinants of aggregate spending. This paper aims at analyze and verify the existence of the bank credit channel in Colombia estimating a model proposed by Gibson (1997) which uses threshold regressions as a way to determine the impact of monetary policy on aggregate demand. Results do not allow dismissing the existence of this transmission mechanism in Colombia during the analyzed period, although it seems to operate only through contractionary monetary policy.

Keywords : monetary policy; transmission mechanisms; bank lending channel; threshold regressions.

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