The main task of monetary policy is the implementation management decisions in direction regulating processes financial market and speed cash flows with necessary exchange rate or inflation. At same time, indirect goal sustainable economic growth. Accordingly, study principles operation, features application certain instruments at different stages development system state real sector economy de...

In recent decades, the declarations of “independent” central banks and the conduct of monetary policy have been assigned an ever increasing role in the pursuit of economic and financial stability. This is curious since there is, in practice, no body of scientific knowledge (evidence based beliefs) solid enough to have ensured agreement among central banks on the best way to conduct monetary pol...

This paper extends the current literature which questions the stability of the monetary transmission mechanism, by using a Dynamic Factor Model with timevarying parameters, which allows fast and efficient inference based on hundreds of explanatory variables. Different specifications are compared where the factor loadings, VAR coefficients and error covariances may change gradually in every peri...

This paper examines the effect of financial frictions on the strength of the monetary transmission mechanism. Credit channel theory implies that the transmission mechanism of monetary policy should be stronger in countries with high levels of financial frictions, all else equal. The intuition is that in these countries, external finance premiums are more sensitive to firms’ financial leverage. ...