want help in the scientific interpretation (the elasticity of the exchange rate of bank loans) which effect of the rise of the exchange rate channel by one unit generates an increase of the bank loans by 5.46 units, under the use of the svar model?
Waiting for your opinion, accept my regards
Sampson otopah Amoafo
The relationship between fx channels and bank credit channels is 1 unit:5.46 units. This unit may be in tens, hundreds or thousands. The relationship as stated by the researcher is positive but the same relationship may be negative. I assume that this relationship is fixed based on the data used. For example, a 10% positive change in fx channels will result in 54.6% increase in bank credit.
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