Monetary Policy Transmission Mechanism in Namibia: A Bayesian VAR Approach

Assessing Changes in the Monetary Transmission Mechanism: A VAR Approach

everal authors have documented a reduced variability of output and inflation in the United States since the beginning of the 1980s.1 In fact, a comparison of the 1980:1-2001:2 period with the two preceding decades shows that the standard deviation of quarterly output growth has fallen 30 percent, while the standard deviation of inflation has decreased more than 40 percent. These changes in the ...

The Transmission Mechanism of Monetary Policy : A Critical Review

Comparing monetary policy rules in CEE economies: A Bayesian approach

a r t i c l e i n f o JEL classification: C11 E32 E52 Keywords: New Keynesian models Small open economy Monetary policy Taylor rules Bayesian methods Using the Bayesian approach, a small open economy DSGE model was estimated using a sample of quarterly data for three Central and Eastern Europe economies, Czech Republic, Hungary and Poland. The hypothesis that central banks react to exchange rat...

Output Composition of Monetary Policy Transmission

This paper aims to investigate the role of each aggregate spending component in the monetary policy transmission in Indonesia. It assesses the relative strength of the role of each spending component in the monetary policy transmission. In so doing, this study employs the contribution analysis, which is calculated based on the cumulative impulse response of each component of GDP to a monetary p...

Labor immobility and the transmission mechanism of monetary policy in a monetary union

It is believed that a common monetary policy in a monetary union will have identical effects on different countries as long as these countries have identical fundamentals. We show that, when there is specialization in production, the terms of trade react to the shock. The transmission mechanism of a monetary shock has in this case an additional channel, the terms of trade. This is the case even...