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Canal de hojas de balance en Uruguay: ¿Acelerador financiero, freno o ambos?

Author

Listed:
  • Gerardo Licandro

    (Banco Central del Uruguay)

  • Miguel Mello

    (Banco Central del Uruguay)

Abstract

This paper tries to address the existence and functioning of a financial accelerator in dollarized economy like Uruguay. Using a database that comprises all banking credit operations we construct sectoral proxies of the external financial premium (EFP) and look for evidence of this important channel of monetary policy. We find that recent data supports the idea of a nonlinear relationship between EFP and the monetary policy rate. During "normal" times, we find that the EFP works as a financial accelerator just as in the case of nondollarized economies. This financial accelerator operates both in domestic and foreign currency denominated credit, though it is stronger in the former. During "crisis" the balance sheet channel works like a financial break. Overall, our evidence suggest a bigger role of this transmission channel than previously thought in the case of Uruguay.

Suggested Citation

  • Gerardo Licandro & Miguel Mello, 2012. "Canal de hojas de balance en Uruguay: ¿Acelerador financiero, freno o ambos?," Documentos de trabajo 2012015, Banco Central del Uruguay.
    • Handle: RePEc:bku:doctra:2012015
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    File URL: https://www.bcu.gub.uy/Estadisticas-e-Indicadores/Documentos%20de%20Trabajo/15.2012.pdf
    File Function: First version, 2012
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    Citations

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    Cited by:

    1. Bucacos, Elizabeth, 2017. "Financial Conditions and Monetary Policy in Uruguay: An MS-VAR Approach," IDB Publications (Working Papers) 8275, Inter-American Development Bank.
    2. Elizabeth Bucacos, 2018. "Financial Conditions and Monetary Policy in Uruguay: An MS-VAR Approach," MIC 2018: Managing Global Diversities; Proceedings of the Joint International Conference, Bled, Slovenia, 30 May–2 June 2018,, University of Primorska Press.
    3. Gerardo Licandro & Miguel Mello, 2018. "Cultural and Financial Dollarization of Households in Uruguay," Investigación Conjunta-Joint Research, in: María José Roa García & Diana Mejía (ed.), Financial Decisions of Households and Financial Inclusion: Evidence for Latin America and the Caribbean, edition 1, volume 1, chapter 11, pages 349-385, Centro de Estudios Monetarios Latinoamericanos, CEMLA.

    More about this item

    Keywords

    Monetary Policy; Business Cycle; Financial Accelerator; Panel Data;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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