Restricciones de liquidez, canal de crédito y consumo en México

The document evaluates the importance of the credit market on consumption in Mexico. A test of the Permanent Income Hypothesis indicates that consumers face liquidity constraints. Considering financing to the private non-banking sector by commercial banks as well as the spread between borrowing and lending rates as proxies of credit market conditions, it is shown that these are important determinants of consumption. In addition, the document finds that there exists transmission mechanism of monetary policy, credit channel, for consumption.