Monetary transmission mechanism in the euro area through the credit channel during the global financial crisis

The aim of the study is to present the impact of the financial and sovereign debt crisis on the functioning of the Eurosystem’s credit channel and attempt to assess the ECB’s anti-crisis measures to improve monetary transmission process. The paper is divided into three major parts. In the first part the transmission mechanism of monetary policy through the credit channel was described. In the second part the situation on the euro area’s credit market in the years 2008–2011 was contained. Then was presented the actions which was undertaken by ECB in order to easing the negative influence of global financial crisis on the transmission mechanism of monetary policy. The essay was concluded with a summary providing conclusions