Macroprudential, Monetary Policy Synergies and Credit Supply: Evidence from Matched Bank-Firm Loan-Level Data in Brazil

Wed, 01 Jan 2025 00:00:00 +0000

Research question and motivation: Reserve requirements (RRs) were largely abandoned as a monetary tool in advanced economies after inflation targeting, but emerging markets (EMs) — especially Brazil — kept using them countercyclically before, during and after the GFC and COVID-19 (53 EMs eased RRs during the pandemic). Despite their wide use, there was scarce loan-level evidence on whether RRs actually manage domestic credit cycles through credit supply, and on whether they have synergies with the short-term policy rate. The paper fills this gap.

Rodrigo Barbone Gonzalez | Macro Paper Warehouse

Macroprudential, Monetary Policy Synergies and Credit Supply: Evidence from Matched Bank-Firm Loan-Level Data in Brazil