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The Measurement of Credit Channel in the CEMAC Zone

Author

Listed:
  • Jean Louis EKOMANE

    () (Advanced School of Economics and Commerce, University of Douala, Cameroon.)

  • Benjamin YAMB

    () (Advanced School of Economics and Commerce, University of Douala, Cameroon.)

Abstract

This article measures the credit channel’s parameters in monetary policy transmission in the CEMAC zone. Having highlighted the limitations of other channels with a theoretical and factual assessment, we check the effectiveness of bank credit channel through the autoregressive vectors’ method, using consolidated monetary and macroeconomic data from six countries in the Zone, from 1960 to 2012. It appears that credit channel is narrow. It has a low outflow and a depth-based credit as far as the private sector is concerned, while the GDP reacts with a two-year period following a monetary policy impulse.

Suggested Citation

  • Jean Louis EKOMANE & Benjamin YAMB, 2016. "The Measurement of Credit Channel in the CEMAC Zone," Journal of Economics and Political Economy, KSP Journals, vol. 3(4), pages 744-766, December.
  • Handle: RePEc:ksp:journ1:v:3:y:2016:i:4:p:744-766
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    References listed on IDEAS

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    Cited by:

    1. Jean Louis EKOMANE, 2017. "Monetary policy transmission: Does the credit channel perform in Cameroon?," Turkish Economic Review, KSP Journals, vol. 4(4), pages 369-377, December.

    More about this item

    Keywords

    Credit channel measurement; Monetary policy; Autoregressive vectors; CEMAC.;

    JEL classification:

    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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