The aim of this paper is to explore the characteristics and functioning of monetary transmission in Croatia. Time series analysis (unit root test, VAR, Johansen cointegration procedure, Granger causality tests and error correction model) is used to estimate the influence of exchange rate, interest rate and narrow money on the real economic activity. The results of econometric analysis suggest t...

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...

This paper reviews trends in capital flows in Latin America and the Caribbean between 2003 and mid-2008 and its implications for monetary policy and financial stability. The financing structure that emerged during this period was more benign than in the past, due to a greater share of foreign direct investment and reduced reliance on foreign financing. Although traditional monetary policy trade...

This paper analyzes the transmission mechanism of monetary policy in an emerging market economy like Mexico. The analysis emphasizes the importance of economic agents’ expectations – mainly inflation expectations and country-risk perception – to understand the effects of monetary policy in emerging market economies. It is shown that both, economic agents’ expectations and the correct identifica...

This paper investigates whether monetary policy accounts for the changes in the output and inflation process observed in the US over the last 25 years. It estimates a structural Bayesian TVC-VAR with MCMC methods, where sign restrictions are used to identify monetary policy shocks, and analyzes the transmission of two types of disturbances: those to the non-systematic and those to the systemati...

Dynamic stochastic general equilibrium models featuring imperfect competition and nominal rigidities have become central for the analysis of the monetary transmission mechanism and for understanding the conduct of monetary policy. However, it is agreed that the benchmark model fails to generate the persistence of output and in‡ation that is observed in the data. Moreover, it cannot provide a th...