I'm trying to study the relationship of general macro factors and their effect on credit in the private sector.
The country in question has a fixed exchange regime with the dollar, would it be correct to use exchange rates of the country's biggest trading partners to the dollar as an explanatory variable.
I'm not sure if should be regressing on the absolute figure of credit, or the year to year change in credit. My reasoning for the latter is that since I'll be using GDP growth rate, CPI based inflation, it's best to see how their changes effect changes in credit. If that's the case, should I use changes in oil price and the stock index, or their yearly averages?