Abstract

LEON, Josefina  and  ALVARADO, César. Mexico: Price Stability and the Limitations of the Bank Credit Channel. Prob. Des [online]. 2015, vol.46, n.181, pp.75-99. ISSN 0301-7036.

In Mexico, monetary policy has proved effective in achieving price stability, but this has not been reflected in economic growth and job creation. This article studies the bank credit channel, a topic that has stirred up much interest in economic literature, specifically analyzing the credit market in Mexico. It hypothesizes that the existence of a banking oligopoly is a key factor that limits the creation of credit in the Mexican economy, which negatively impacts economic activity.

Keywords : Price stability; financial institutions; banking system; bank credit; monetary policy.