Abstract
In this paper, the mechanism is investigated how monetary policy is transmitted to the real economy in Japan The system is constructed in a form of VEC(Vector Error Correction) model and impulse responses of real GDP are calculated under situations such that the shock of call rate influences to real GDP with two channels of money and credit. Furthermore, the credit channel is classified by two kinds of bank loans: those to big enterprises(denoted by bloan) and those to small-to-medium-sized enterprises(denoted by sloan). Impulse responses of bank loans are also investigated.
