Juliano Morais Galle

The economic literature on monetary transmission mechanism points to the existence of the credit channel. The purpose of this study is to evaluate the  importance of the credit channel for different types of credit such as industrial and  rural credit, among others. Also, four indicators of product were considered: GDP of agriculture, services, industry, and civil construction industry. Initially we present the existing literature on the credit channel. Then, this work analyzes the recent dynamic of different forms of credit issued by the Central Bank of Brazil to the Brazilian economy. Yet, it sought to point the various constraints of the dynamics of crediting in recent Brazilian experiense. From these different forms of credit, establishing which one delineates the transmission mechanisms of monetary policy using the VAR model. The results showed that some credit forms are more important as the transmission mechanism of monetary policy. Hence, these results suggest that the credit channel exists in particular ways for different types of credit in the economy.