Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/86121 
Year of Publication: 
2009
Series/Report no.: 
Working Paper No. 2009/43
Publisher: 
Banco Central de la República Argentina (BCRA), Investigaciones Económicas (ie), Buenos Aires
Abstract (Translated): 
Until the eruption of the 2007-2008 international crisis, the decade was characterized by a high growth of credit - especially credit lines for consumption - and of GDP in a large part of the developed and developing worlds. By the end of the period, the process coincided with increasing inflationary pressures in several countries, which might suggest a potential relationship between credit for consumption and inflation. To give an answer to this question, we have performed an econometric analysis using information on 30 countries, both developed and developing, for the period 1995-2007. Our findings reject this hypothesis unequivocally since they provide no evidence whatsoever of a relationship between these two variables. Our interpretation of this first evidence is that the absence of the anticipated effect may result from the scarce weight of credit on the private sector’s spending.
Subjects: 
consumer credit
inflation
panel data analysis
private sector expenditure
JEL: 
C23
E21
E31
Document Type: 
Working Paper

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