Table 2 Impact of credit impulse on...

Table 2

Impact of credit impulse on inflation: local projections (world sample)

	(1)	(2)	(3)	(4)	(5)
	h = 1	h = 2	h = 3	h = 4	h = 5
Credit impulse (ci)	0.005	0.003	0.041^***	0.030^*	0.006
Credit impulse (ci)	(0.030)	(0.023)	(0.009)	(0.012)	(0.013)
Debt/GDP	0.021	−0.014	−0.005	−0.007	−0.013
Debt/GDP	(0.023)	(0.013)	(0.010)	(0.012)	(0.015)
Current account/GDP	−0.236^**	−0.212^*	−0.115^*	−0.004	0.021
Current account/GDP	(0.085)	(0.082)	(0.050)	(0.038)	(0.030)
Real GDP growth	−0.012	0.071	0.187	0.343^*	0.190^**
Real GDP growth	(0.185)	(0.083)	(0.117)	(0.141)	(0.068)
Trade openness	0.026	−0.011	−0.009	−0.009	−0.004
Trade openness	(0.017)	(0.017)	(0.019)	(0.011)	(0.008)
Lending interest rate	0.149	−0.070	−0.083	−0.006	−0.006
Lending interest rate	(0.103)	(0.092)	(0.093)	(0.028)	(0.018)
Institutional quality	−0.141	−0.121	−0.091	−0.053	−0.014
Institutional quality	(0.080)	(0.075)	(0.075)	(0.059)	(0.039)
Country FE	Yes	Yes	Yes	Yes	Yes
Year FE	Yes	Yes	Yes	Yes	Yes
Observations	574	569	564	553	532

	(1)	(2)	(3)	(4)	(5)
	h = 1	h = 2	h = 3	h = 4	h = 5
Credit impulse (ci)	0.005	0.003	0.041^***	0.030^*	0.006
Credit impulse (ci)	(0.030)	(0.023)	(0.009)	(0.012)	(0.013)
Debt/GDP	0.021	−0.014	−0.005	−0.007	−0.013
Debt/GDP	(0.023)	(0.013)	(0.010)	(0.012)	(0.015)
Current account/GDP	−0.236^**	−0.212^*	−0.115^*	−0.004	0.021
Current account/GDP	(0.085)	(0.082)	(0.050)	(0.038)	(0.030)
Real GDP growth	−0.012	0.071	0.187	0.343^*	0.190^**
Real GDP growth	(0.185)	(0.083)	(0.117)	(0.141)	(0.068)
Trade openness	0.026	−0.011	−0.009	−0.009	−0.004
Trade openness	(0.017)	(0.017)	(0.019)	(0.011)	(0.008)
Lending interest rate	0.149	−0.070	−0.083	−0.006	−0.006
Lending interest rate	(0.103)	(0.092)	(0.093)	(0.028)	(0.018)
Institutional quality	−0.141	−0.121	−0.091	−0.053	−0.014
Institutional quality	(0.080)	(0.075)	(0.075)	(0.059)	(0.039)
Country FE	Yes	Yes	Yes	Yes	Yes
Year FE	Yes	Yes	Yes	Yes	Yes
Observations	574	569	564	553	532

Note(s): Dependent variable is CPI inflation (annual %). Entries report coefficients and robust standard errors (in parentheses) from local projections of horizon h. ci is the credit impulse. Country and year fixed effects included. ^*p < 0.10,^**p < 0.05, ^***p < 0.01

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