The Credit Channel as a Monetary Transmission Mechanism: Some Microeconometric Evidence for Switzerland

Daniel Kalt

Swiss Journal of Economics and Statistics (SJES), 2001, vol. 137, issue IV, 555-578

Abstract: The theory on the credit channel of monetary transmission emphasizes the role of the banking system in propagating monetary shocks. In this paper we test whether, following the abrupt tightening of the Swiss National Bank at the end of the 80s, the investment cycle in the Swiss economy was amplified through the lending behaviour of Swiss banks. Using a panel-data VAR approach on a broad sample of Swiss firms we find no significant impact of monetary conditions on companies' investment behaviour during the recession of the 90s. There is no evidence for the hypothesis that the credit channel is an important monetary transmission mechanism.

Date: 2001
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sjes.ch/papers/2001-IV-4.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ses:arsjes:2001-iv-4

Access Statistics for this article

Swiss Journal of Economics and Statistics (SJES) is currently edited by Marius Brülhart

More articles in Swiss Journal of Economics and Statistics (SJES) from Swiss Society of Economics and Statistics (SSES) Contact information at EDIRC.
Bibliographic data for series maintained by Kurt Schmidheiny ().