Effect on the Real Economy of Monetary Transmission Mechanism: A Literature Research on the International Credit Channel

Year 2019, Volume: 8 Issue: 15, 77 - 87, 31.01.2019

Deniz Macit , Özlem Durgun

Abstract

The
monetary transmission mechanism that attempts to explain the effects of the
central bank's monetary policy changes on real economic variables; the changes
in the monetary policy decisions of the monetary policy are explaining the
process of influencing inflation and total output. This study aimed to
emphasize the importance of the credit channel in the monetary policy transfer
mechanism over the real economy. In the study, a qualitative approach based on
comparative analysis between the outlook of the international credit channel,
the methodological aspects and the results of the literature studies in
monetary transmission was used. The main findings from the study of the
literature are as follows; the impact of monetary policy decisions on the real
economy is important even in the context of economic and financial crises and
the appearance of international credit is strongly supported by many studies.
Studies conducted on the basis of the US show that the international credit
channel operates more effectively than the studies on European countries.

Keywords

Monetary Policy, Transmission Mechanism, International Credit Channel

Parasal Aktarım Mekanizmasının Reel Ekonomi Üzerine Etkisi: Uluslararası Kredi Kanalına Yönelik Bir Literatür Araştırması

Abstract

Merkez
bankalarının para politikasındaki değişikliklerinin reel ekonomik değişkenler
üzerindeki etkilerini açıklamaya çalışan parasal aktarım mekanizması, parasal
otoritenin para politikası kararlarındaki değişimlerin enflasyon ve toplam
hâsılayı etkileme sürecini açıklamaya çalışmaktadır. Bu çalışma, para
politikası aktarım mekanizmasında yer alan kredi kanalının reel ekonomi
üzerindeki önemini vurgulamayı amaçlamaktadır. Çalışmada, ağırlıklı olarak
parasal aktarımda uluslararası kredi kanalına yönelik bakış açısı, metodolojik
yönler ve literatürdeki çalışmaların sonuçları arasındaki karşılaştırmalı
analize dayalı niteliksel bir yaklaşım kullanılmaktadır. Literatürün
incelenmesinden elde edilen ana bulgular şöyledir: para politikası kararlarının
reel ekonomi üzerindeki etkisi, ekonomik ve finansal kriz koşullarında bile
önemlidir ve uluslararası kredi görünümü pek çok araştırma tarafından güçlü bir
şekilde desteklenmektedir. ABD bazında yapılan çalışmalar Avrupa ülkelerine
kıyasla uluslararası kredi kanalının daha etkin işlediğini ortaya koymaktadır.

Keywords

Para Politikası, Aktarım Mekanizması, Uluslararası Kredi Kanalı

References

• Alper, K., & Tiryaki, T. (2011). Zorunlu karşılıkların para politikasındaki yeri. TCMB Ekonomi Notları, 8, 1-10.
• Altunbaş, Y., Fazylov, O., & Molyneux, P. (2002). Evidence on the bank lending channel in Europe. Journal of Banking & Finance, 26(11), 2093-2110.
• Bacchetta, P., & Ballabriga, F. (2000). The impact of monetary policy and banks' balance sheets: some international evidence. Applied Financial Economics, 10(1), 15-26.
• Başçı, E., & Kara, H. (2011). Finansal istikrar ve para politikası. TCMB Çalışma Tebliği, Tebliğ No: 11–08, 1–21.
• Baskaya, Y. S., Di Giovanni, J., Kalemli-Özcan, Ş., Peydró, J. L., & Ulu, M. F. (2017). Capital flows and the international credit channel. Journal of International Economics, 108, 15-22.
• Bernanke, B. S. (1993). Credit in the Macroeconomy. Quarterly Review-Federal Reserve Bank of New York, 18, 50-50.
• Bernanke, B. S., & Gertler, M. (1995). Inside the black box: the credit channel of monetary policy transmission. Journal of Economic Perspectives, 9(4), 27-48.
• Bhattacharya, S., & Thakor, A. V. (1993). Contemporary banking theory. Journal of financial Intermediation, 3(1), 2-50.
• Bocutoğlu, E. (2014). Makro İktisat: Teoriler ve Politikalar. Bursa: Ekin Yayınevi.
• Cecchetti, S. G. (1995). Distinguishing theories of the monetary transmission mechanism. Review-Federal Reserve Bank of Saint Louis, 77(3), 83-83.
• Cecchetti, S. G. (1999). Legal structure, financial structure, and the monetary policy transmission mechanism. FRBNY Economic Policy Review, 5(2), 9–28.
• Cecchetti, S. G. (2006). Money Banking and Financial Markets. New York: McGraw-Hill Education.
• Choi, S. (2018). The impact of US financial uncertainty shocks on emerging market economies: an international credit channel. Open Economies Review, 29(1), 89-118.
• Ciccarelli, M., Maddaloni, A., & Peydró, J. L. (2010). Trusting the bankers: A new look at the credit channel of monetary policy. European Central Bank Working Paper Series. WP No. 1228. (Accessded on 20.05.2018), https://www.ecb.europa.eu/pub/pdf/scpwps/ecbwp1228.pdf
• Çiçek, M. (2005). Türkiye’de Parasal Aktarım Mekanizması: VAR (Vektör Otoregrasyonu) Yaklaşımıyla Bir Analiz. Iktisat Isletme ve Finans, 20(233), 82-105.
• De Bondt, G. J. (1998). Credit channels in Europe: Bank level panel data analyses. De Nederlandsche Bank Research Memorandum Wo&E, No: 543/9813. (Accessded on 20.05.2018), https://www.dnb.nl/en/binaries/wo0543_tcm47-145884.pdf
• De Bondt, G. J. (2004). The balance sheet channel of monetary policy: first empirical evidence for the euro area corporate bond market. International Journal of Finance & Economics, 9(3), 219-228.
• Dedola, L., & Lippi, F. (2005). The monetary transmission mechanism: evidence from the industries of five OECD countries. (Accessded on 20.05.2018), http://fmwww.bc.edu/RePEc/es2000/1833.pdf
• Demirgüç-Kunt, A., Levine, R., & Min, H. G. (1998). Opening to foreign banks: Issues of stability, efficiency, and growth. In: Allan Meltzer (Ed.), The implications of globalization of world financial markets, 83-115. Seoul, Korea: Bank of Korea.
• Ehrmann, M., Gambacrota, L., Martinez-Pages, J., Sevestre, P., & Worms, A. (2001). Financial systems and the role of banks in monetary policy transmission in the Euro area, European Central Bank. European Central Bank Working Paper Series, WP No: 105.
• Erdoğan, S., & Yıldırım, D. Ç. (2008). Türkiye'de döviz kuru kanalının işleyişi: VAR modeli ile bir analiz. İstanbul Üniversitesi Siyasal Bilgiler Fakültesi Dergisi, 39, 94-108.
• Erdoğan, S., & Yıldırım, D. Ç. (2009). Türkiye’de Faiz Kanalı ile Parasal Aktarım Mekanizması. Eskişehir Osmangazi Üniversitesi İİBF Dergisi, 4(2), 57-72.
• Erdoğan, S., & Yıldırım, D. Ç. (2014). Parasal aktarım mekanizması konut fiyatları kanalı üzerine ampirik bir analiz. The Journal of Social Sciences Research, 23, 19-32.
• Ferreira, C. (2007). The bank lending channel transmission of monetary policy in the emu: a case study of Portugal. European Journal of Finance, 13(2), 181-193.
• Hubbard, R. G. (1995). Is there a credit channel for monetary policy. Federal Reserve Banks of St. Louis Review, May-June 1995, 63–77.
• Igan, D., Kabundi, A., De Simone, F. N., & Tamirisa, N. (2013). Monetary policy and balance sheets. IMF Working Paper, WP/13/158. (Accessded on 20.05.2018), https://www.imf.org/external/pubs/ft/wp/2013/wp13158.pdf
• İnan, E. A. (2001). Parasal Aktarım Mekanizması Kredi Kanalı ve Türkiye. Bankacılar Dergisi, 39, 3–19.
• Kamin, S., Turner, P., & Van Öt dack, J. (1998). The transmission mechanism of monetary policy in emerging market economies: an overview. Bank for International Settlements, BIS Papers No: 3, 4–64.
• Kashyap, A. K., & Stein, J. C. (1995). The impact of monetary policy on bank balance sheets. In: Carnegie-Rochester Conference Series on Public Policy (Vol. 42, pp. 151-195). North-Holland.
• Kashyap, A. K., & Stein, J. C. (1997). The role of banks in monetary policy: A survey with implications for the European monetary union. Economic Perspectives-Federal Reserve Bank of Chicago, 21, 2-18.
• Kishan, R. P., & Opiela, T. P. (2000). Bank size, bank capital, and the bank lending channel. Journal of Money, Credit & Banking, 32(1), 121-121.
• Kydland, F. E., & Prescott, E. C. (1977). Rules rather than discretion: The inconsistency of optimal plans. Journal of political economy, 85(3), 473-491.
• Loayza, N., & Schmidt-Hebbel, K. (2002). Monetary policy functions and transmission mechanisms: an overview. In: Loayza, Norman & Klaus Schmidt-Hebbel (Ed.), Monetary Policy: Rules and Transmission Mechanisms, 1-20. Chile: Central Bank of Chile.
• Mishkin, F. S. (1996). The channels of monetary transmission: lessons for monetary policy. National Bureau of Economic Research. (No. w5464), 2–15.
• Mishkin, F. S. (2004). The economics of money, banking, and financial markets. Boston, Pearson: Addison Wesley.
• Mohanty, M., & Turner, P. (2008). Transmission Mechanisms for Monetary Policy in Emerging Market Economies. Bank for International Settlements, 35, 1–59.
• Norrbin, S. (2000). What Have We Learned from Empirical Tests of the Monetary Transmission Effect. Sveriges Riksbank Working Paper Series, WP No: 121. (Accessded on 20.05.2018), https://pdfs.semanticscholar.org/de24/bb62e8ffc8180aabbf5462a3e04e1b855e7b.pdf
• Orhan, Z. O., & Erdoğan, S. (2015). Para Politikası. Kocaeli: Umuttepe Yayınları.
• Passamani, G., & Tamborini, R. (2013). Monetary policy through the ‘credit-cost channel’: Italy and Germany pre-and post-EMU. Applied Economics, 45(29), 4095-4113.
• Paya, M. (2013). Para Teorisi ve Para Politikası. İstanbul: Türkmen Kitabevi.
• Peek, J., & Rosengren, E. S. (1997). The international transmission of financial shocks: The case of Japan. The American Economic Review, 87(4), 495-505.
• Pizarro-Barceló, R. (2003). The Bank Credit Channel and the Asymmetric Effects of Monetary Policy in the Euro Area. In: IIIemes Journees D’Estudes Jean Monet, University Montesquieu Bordeaux IV, 18–19 June.
• Safaei, J., & Cameron, N. E. (2003). Credit channel and credit shocks in Canadian macrodynamics-a structural VAR approach. Applied Financial Economics, 13(4), 267-277.
• Schnabl, P. (2012). The international transmission of bank liquidity shocks: Evidence from an emerging market. The Journal of Finance, 67(3), 897-932.
• Suzuki, T. (2008). International credit channel of monetary policy: An empirical note. Australian Economic Papers, 47(4), 396-407. https://doi.org/10.1111/j.1467-8454.2008.00357.x
• Taylor, J. B. (1995). The monetary transmission mechanism: an empirical framework. Journal of Economic Perspectives, 9(4), 11-26.
• Tillmann, P. (2008). Do interest rates drive inflation dynamics? An analysis of the cost channel of monetary transmission. Journal of Economic dynamics and Control, 32(9), 2723-2744.
• Yıldırım, D. Ç. (2013). The effectiveness of the credit channel in the Eurozone. The Journal of Academic Social Science Studies, 6(7), 1251-1264.
• Yıldırım, D. Ç., & Erdoğan, S., (2014). Parasal aktarım mekanizması konut fiyatları kanalı üzerine ampirik bir analiz. The Journal of Social Sciences Research, 23, 19-32.
• Yıldırım, D. Ç., & Mirasedoğlu, M. U. (2015). Aktarım Mekanizmasının Hisse Senedi Fiyatları Kanalının Etkinliğine İlişkin Bir Analiz. Eskişehir Osmangazi Üniversitesi Sosyal Bilimler Dergisi, 16(2), 105-126.