Transmission Mechanisms for Monetary Policy in Emerging Market Economies
Author: Bank for International Settlements. Monetary and Economic Dept
Publisher:
Published: 2008
Total Pages: 539
ISBN-13: 9789291317516
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Monetary Policy Transmission in Emerging Markets and Developing Economies
Author: Mr.Luis Brandao-Marques
Publisher: International Monetary Fund
Published: 2020-02-21
Total Pages: 54
ISBN-13: 1513529730
DOWNLOAD EBOOK →Central banks in emerging and developing economies (EMDEs) have been modernizing their monetary policy frameworks, often moving toward inflation targeting (IT). However, questions regarding the strength of monetary policy transmission from interest rates to inflation and output have often stalled progress. We conduct a novel empirical analysis using Jordà’s (2005) approach for 40 EMDEs to shed a light on monetary transmission in these countries. We find that interest rate hikes reduce output growth and inflation, once we explicitly account for the behavior of the exchange rate. Having a modern monetary policy framework—adopting IT and independent and transparent central banks—matters more for monetary transmission than financial development.
Inflation Targeting and Monetary Policy Transmission Mechanisms in Emerging Market Economies
Author: Ms.Sanchita Mukherjee
Publisher: International Monetary Fund
Published: 2011-10-01
Total Pages: 29
ISBN-13: 1463921292
DOWNLOAD EBOOK →In this paper we empirically examine the operation of the traditional Keynesian interest rate channel of the monetary policy transmission mechanism in five potential inflation targeting economies in the MENA region and compare it with fourteen inflation targeting (IT) emerging market economies (EMEs) using panel data analysis. Contrary to some existing studies, our empirical results suggest that private consumption and investment in both groups of countries are sensitive to movements in real interest rates. Moreover, we find that the adoption of IT did not significantly alter the operation of the interest rate channel in IT EMEs. Also, the interest rate elasticities of private consumption and private investment vary with the level of development of the domestic financial market. Finally, capital account liberalization have opposite effects on private consumption and private investment in the two groups of countries.
Monetary Policy Transmission in an Emerging Market Setting
Author: Ila Patnaik
Publisher: International Monetary Fund
Published: 2011-01-01
Total Pages: 27
ISBN-13: 1455211834
DOWNLOAD EBOOK →Some emerging economies have a relatively ineffective monetary policy transmission owing to weaknesses in the domestic financial system and the presence of a large and segmented informal sector. At the same time, small open economies can have a substantial monetary policy transmission through the exchange rate channel. In order to understand this setting, we explore a unified treatment of monetary policy transmission and exchangerate pass-through. The results for an emerging market, India, suggest that the most effective mechanism through which monetary policy impacts inflation runs through the exchange rate.
Monetary Policy Frameworks for Emerging Markets
Author: Gill Hammond
Publisher: Edward Elgar Publishing
Published: 2009-01-01
Total Pages: 369
ISBN-13: 1848449194
DOWNLOAD EBOOK →Financial globalisation has made the formulation of monetary policy in emerging market economies increasingly complicated. This timely set of studies looks at the turmoil in global financial markets, which, coupled with volatile inflation, poses serious challenges for central banks in these countries. The book features a number of specially commissioned new papers from both front-line policymakers and researchers in developing and emerging market economies, which tackle the difficult issues currently being debated with increasing urgency by monetary policy theorists and policymakers around the world. They address questions such as: What monetary policy framework is most suitable for emerging market countries to confront the new challenges while they continue to open up to trade and financial flows? , What are the linkages between monetary stability and financial stability? and Is inflation targeting or a fixed exchange rate regime preferable for developing and emerging markets? Providing unique insights on the interaction between the theory and practice of monetary policy in emerging markets, this book will be of great interest to academics and students of economics, economic policy and development economics. Policymakers will also find this to be a useful and thought-provoking read.
The Transmission of Monetary Policy in Emerging Market Economies
Monetary Policies and Inflation Targeting in Emerging Economies
Author: de Mello Luiz
Publisher: OECD Publishing
Published: 2008-04-15
Total Pages: 178
ISBN-13: 9264044639
DOWNLOAD EBOOK →This book, based on the proceedings of a conference organised by the OECD and the Bank of England's Centre for Banking Studies, examines cross-country issues related to the conduct of monetary policy in emerging markets and the role of inflation targeting in improving macroeconomic performance.
The Anatomy of Monetary Policy Transmission in an Emerging Market
Author: Kodjovi M. Eklou
Publisher: International Monetary Fund
Published: 2023-07-07
Total Pages: 29
ISBN-13:
DOWNLOAD EBOOK →Monetary policy transmission in EMs has been found to be weak historically due to under-developed financial markets and heavy central bank intervention in FX markets that undermine the exchange rate channel. Against this background, this paper investigates the transmission of monetary policy, including the role of external factors, in Malaysia and highlight findings that could be relevant for other EMs. We find an important role for the credit and the exchange rate channels. Further, we also find a complementary role for policy tools including Foreign Exchange Intervention (FXI) and liquidity tools such as Statutory Reserve Requirement in shaping the transmission of monetary policy. We then explore the spillover effects of external global factors including global monetary policy and global commodity prices on monetary policy transmission in a small open economy such as Malaysia. The results show that while global commodity prices do not impair monetary policy transmission, global monetary policy tightening could complement domestic efforts to achieve price stability by inducing a global disinflation. Finally, monetary policy transmission is delayed and weakened in high inflationary environment, with the implication that more aggressive and preemptive policy actions may be needed in such cases.
Monetary Transmission
Author: Mr.Ales Bulir
Publisher: International Monetary Fund
Published: 2015-11-20
Total Pages: 37
ISBN-13: 1513574884
DOWNLOAD EBOOK →We use two alternative representations of the yield curve to test the functioning of the interest rate transmission mechanism along the yield curve based on government paper in a sample of emerging market and low-income countries. We find a robust link from shortterm policy and interbank rates to longer-term bond yields. Two policy implications emerge. First, the presence of well-developed secondary financial markets does not seem to affect transmission of short term rates along the yield curve. Second, the strength of the transmission mechanism seems to be affected by the choice of the monetary regime: countries with a credible inflation targeting regime seem to have “better behaved” yield curves than those with other monetary regimes.
Two Targets, Two Instruments
Author: Mr.Jonathan David Ostry
Publisher: International Monetary Fund
Published: 2012-02-29
Total Pages: 25
ISBN-13: 1475554281
DOWNLOAD EBOOK →Staff Discussion Notes showcase the latest policy-related analysis and research being developed by individual IMF staff and are published to elicit comment and to further debate. These papers are generally brief and written in nontechnical language, and so are aimed at a broad audience interested in economic policy issues. This Web-only series replaced Staff Position Notes in January 2011.
