The recent financial crisis has brought to the forefront the need for a better understanding of
the transmission mechanisms of monetary policy. The main step forward on this issue has
drawn on work aimed at stressing the role of the financial sector in this transmission.
Particular emphasis has been placed on how policy actions impact risk perceptions and
attitudes of banks and other financial institutions, leading to shifts in the supply of credit.
Along these lines, and based on evidence from Colombia, this paper finds a significant link …

The recent financial crisis has brought to the forefront the need for a better understanding of
the transmission mechanisms of monetary policy. The main step forward on this issue has
drawn on work aimed at stressing the role of the financial sector in this transmission.
Particular emphasis has been placed on how policy actions impact risk perceptions and
attitudes of banks and other financial institutions, leading to shifts in the supply of credit.
Along these lines, and based on evidence from Colombia, this paper finds a significant link …