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Original scientific paper

The broad credit and bank capital channels of monetary policy transmission in the core and peripheral Euro Area

Silvo Dajcman ; University of Maribor, Faculty of Economics and Business, Maribor, Slovenia
Josip Tica orcid id ; University of Zagreb, Faculty of Economics & Business, Zagreb, Croatia

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page 249-275

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The goal of the paper is to identify and estimate transmission of monetary policy
impulses through the broad credit and bank capital monetary policy transmission
channels in the “core” and “peripheral” countries of the euro area. We employ
the Euro Area Banking Lending Survey to identify the channels. Following
identification, we employ the data in a panel vector autoregression model (PVAR)
to investigate the pass-through of the standard and nonstandard monetary policy
impulses to the gross domestic product (GDP), inflation, and volume of loans. The
results imply that channels are interrelated and the broad credit channel is
relatively stronger than the bank capital channel, while the relative importance of
the bank capital channel is higher in peripheral than core euro area countries.


monetary policy, transmission channels, bank credit standards, nonstandard monetary policy

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Article data in other languages: croatian

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