An International Perspective on the Loan Puzzle in Emerging Markets
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Banking and Finance Issues in Emerging Markets
ISBN: 978-1-78756-454-1, eISBN: 978-1-78756-453-4
Publication date: 4 October 2018
Abstract
In seminal work, Den Haan et al. (2007, 2010, 2011) show business loans respond in the opposite direction of what may be intended by monetary policy action in the United States and Canada. Based on various approaches, identification schemes, and samples, we document evidence this loan puzzle is not exclusive to developed economies but is also pervasive in emerging markets. We find business loans generally decline following expansionary monetary policy shocks. A preponderance of statistical and structural evidence indicates important transmissions of this puzzle from the United States to emerging markets.
Keywords
Citation
Leblebicioglu, A. and Valcarcel, V.J. (2018), "An International Perspective on the Loan Puzzle in Emerging Markets
Publisher
:Emerald Publishing Limited
Copyright © 2018 Emerald Publishing Limited