THE TRANSMISSION OF MONETARY-POLICY AND BANK - THE CASE OF 3 OECD COUNTRIES

The debate on monetary policy transmission channels has recently focused on the ''bank credit channel''. We have used VAR models in order to simulate the impact of monetary policy shocks on the economies of United States, Japan and Germany. The estimation of the VAR also permits consideration of the reaction function of monetary policy authorities. The main result is that, at least at the macro level, credit does not react significantly following a shock to interest rates. In contrast, the significant reaction of both monetary aggregates and exchange rates confirms the assumption that monetary policy is transmitted through these variables.