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The credit channel in middle income countries High quality books

The credit channel in middle income countries
By:Aaron Tornell,Frank Westermann,National Bureau of Economic Research
Published on 2002 by

Estimating these VARs using quarterly data for a group of MICs, we find evidence for a strong credit channel, for a balance sheet effect and for asymmetric sectorial responses. Our findings indicate that inflation targeting is not sufficient to guarantee economic stability, as such policy might overlook the development of lending booms and associated sectorial asymmetries.

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