Latest / Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Watching the Credit Channel Now
In Episode 85 of Monetary Policy Explained with Fexingo, Lucas and Luna dive into the credit channel of monetary policy — a mechanism that's getting fresh attention from central bankers in mid-2026. They anchor the discussion around a real-world case: the European Central Bank's April 2026 bank lending survey, which showed the steepest tightening of credit standards since 2012 outside of crisis periods. Lucas explains how the credit channel amplifies rate hikes through bank lending behavior, and why it may be a more powerful transmission mechanism than conventional models assume…
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