Abstract:

The monetary transfer mechanism, which tries to explain the effects of changes in the monetary policy of central banks on real economic variables, tries to explain the process of changes in monetary policy decisions of the monetary authority affecting inflation and the overall balance sheet. This study aims to emphasize the importance of the credit channel involved in the monetary policy transfer mechanism over the real economy. The study mainly uses a qualitative approach based on the comparative analysis of the perspective of the international credit channel, the methodological aspects and the results of the studies in literature. The main findings obtained from the study of literature are the following: the impact of monetary policy decisions on the real economy is important even in economic and financial crisis conditions, and the international credit view is strongly supported by many research. Studies on the basis of the U.S. show that the international credit channel operates more effectively than the European countries.

Abstract:

The monetary transmission mechanism that attempts to explain the effects of the central bank's monetary policy changes on real economic variables; the changes in the monetary policy decisions of the monetary policy are explaining the process of influencing inflation and total output. This study aimed to emphasize the importance of the credit channel in the monetary policy transfer mechanism over the real economy. In the study, a qualitative approach based on comparative analysis between the outlook of the international credit channel, the methodological aspects and the results of the literature studies in monetary transmission was used. The main findings from the study of the literature are as follows; the impact of monetary policy decisions on the real economy is important even in the context of economic and financial crises and the appearance of international credit is strongly supported by many studies. Studies conducted on the basis of the US show that the international credit channel operates more effectively than the studies on European countries.

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