output composition of monetary policy transmission
Authors
abstract
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 policy tightening shock estimated from structural vector autoregressive (svar) models. this paper finds that on average consumption spending plays predominant role in the monetary policy transmission. jel classification numbers: c12, c22, c52 key words: monetary policy, transmission mechanism, output composition channel, vector autoregression.
similar resources
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...
full textMonetary policy transmission channels and policy instruments ∗
The Federal Reserve has implemented policies during the past six years that rely on channels of transmission to the real economy that economic models have assumed to exist but seldom tested or on channels that were simply presumed not to exist. I discuss the board channels of monetary policy transmission that may allow forward guidance and balance sheet policies to affect the economy. The assum...
full textHow Much Should Monetary Policy Take Output
I would like to thank the organizers for the privilege of discussing two of the fine papers presented here today. My assignment is to discuss Gaspar and Smets (2002) and Wolfers (2003), as well as to give my own view on how much monetary policy should take output into account and the best way of doing so. Let me start with the Gaspar and Smets paper. I find it very interesting and well worth st...
full textThe Output Gap and Optimal Monetary Policy
In a standard New Keynesian model, a discretionary and myopic central bank concerned with changes in the output gap and inßation will implement a monetary policy that replicates the optimal, timeless perspective, precommitment policy. By stabilizing output gap changes, the central bank imparts inertia into output and inßation that is absent under pure discretion. It is shown that even a fully o...
full textMonetary Policy with Unobserved Potential Output
This paper studies some effects of real time information for the implementation of monetary policy. We consider an economy in which several sources of uncertainty, such as measurement errors and imperfectly observable states, do not allow the policy maker to identify the true state of the economy. Optimal policy thus requires the policy maker to jointly solve a filtering and an optimization pro...
full textEndogenous Monetary Policy with Unobserved Potential Output ∗
This paper characterizes endogenous monetary policy when policymakers are uncertain about the extent to which movements in output and inflation are due to changes in potential output or to cyclical demand and cost shocks. We refer to this informational limitation as the “information problem” (IP). Main results of the paper are: 1. Policy is likely to be excessively loose (restrictive) for some ...
full textMy Resources
Save resource for easier access later
Journal title:
international journal of business and development studiesجلد ۱، شماره ۱، صفحات ۱۱۳-۱۴۰
Hosted on Doprax cloud platform doprax.com
copyright © 2015-2023