Monetary Conditions Index for Kenya

Taylor interest rate and Monetary Conditions Index

Introduction and Estimation of Monetary Conditions Index for Iran's Economy Using Johansson-Josilius Error Correction Method

Determining the monetary policy rule and identifying expansionary and contractionary policies is of particular importance to monetary policymakers. Monetary conditions index as an average weight of effective money transfer channels can play an important role in identifying expansionary and contractionary monetary policies. Therefore, in this article, the index of monetary conditions along with ...

A monetary policy rule: The augmented Monetary Conditions Index for Philippines using UECM and bounds tests

This paper constructs the augmented monetary conditions index (AMCI) over 1982:12004:4 using UECM and bounds test approach for the Philippines data. Results reveal evidence of cointegration between the real GDP and its determinants, namely shortterm interest rate, exchange rate and claims on private sectors that take into account three key transmission mechanisms channels in the conduct of mone...

Constructing a New Monetary Condition Index for Iran

Reliable measures of the size and direction of changes in monetary policy are very crucial for examining the effects of monetary policy on the economy. Monetary Condition Index (MCI) can be used as a tool to assess the stance of monetary policy. This index is defined as the weighted average of different monetary transmission mechanism relative to their values in a base period. The weights in MC...

A measure of monetary conditions

This paper explains why the overall stance of monetary policy is effected by both interest rates and the exchange rate, and hence why a Monetary Conditions Indicator can provide useful information about the stance of policy. Three output gap equations estimated in this paper reveal that the real interest rate and the real exchange rate both affect excess demand but that the real interest rate i...