The credit channel in Peru: an SVAR approach

This paper studies the credit channel for the Peruvian economy during the period 2002-2012. A restricted Structural Vector Autoregressive (SVAR) model augmented with expectations is identified. The objective is to analyze the effects of monetary policy and credit shocks on some important macroeconomic variables. The model is estimated by the Generalized Method of Moments (GMM) and the results show that the credit channel has been operating as a transmission mechanism of monetary policy to the aggregate economy. (Audio: Department of Economic Publications)