Credit Rationing and Monetary Transmission: Evidence for Portugal
Estudos de Economia, Vol. 19, No. 1, pp. 5-19, 1999
15 Pages Posted: 8 Mar 2004
The hypothetical existence of rationing in the credit market is of paramount importance to understand the transmission mechanism of monetary policy. Two indirect empirical tests of credit rationing are presented and discussed using Portuguese data. The first test is a stickiness test to the response of loan rates to changes in money market conditions. For the second test a VAR is estimated in order to analyse the implied causality relations.
Keywords: credit rationing, credit market, banking, causality tests, Portugal
JEL Classification: E44
Suggested Citation: Suggested Citation