Effect on the Real Economy of Monetary Transmission Mechanism: A Literature Research on the International Credit Channel

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