The evolution of industrial credit in Brazil: an analisis based on ok macroeconomic factors

This work aimed at analyzing the influence of macroeconomic variables on the amount of credit to manufacturing industries in the post-Real period. As a scenario for the discussion there is, on one side, the decreasing trajectory of industrial credit in recent years and, on the other, the expansionary monetary policies. To achieve that goal, a vector autoregressive model with error correction was employed, which allowed the analysis of short and long-term dynamics. Results suggest that the recurring influence of the exchange rate and the aggregated product explains the behavior of credit operations in Brazilian economy, in both the short and long term. Furthermore, results also reveal the more prolonged effects of product over industrial credit, while variables related to politics, except exchange rate, produce temporary effects.