Abstract
This paper estimates the transmission of monetary policy through
bank credit channel in the context of Pakistan. For analysis purpose
bound testing co-integration analysis and Error Correction Model is
used with General to specific approach. Monthly data for the period
of 2002 to 2012 is used in this study. Results of this study appear that
bank credit channel does not provide additional leverage to
authorities for the conduct of monetary policy. It means that increase
in interest rate does not decrease the bank credits because banks
make adjustment against monetary policy shocks by using their
liquid financial instruments.
Key Words: Bank Credits, Monetary Policy
arif saleem cheema, muhammad naeem. (2019) Credit Channel of Monetary Policy Transmission: Evidence from Pakistan , Journal of Managerial Sciences, Volume 13, Issue 3.
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