After the accession of the candidate countries to the European Union in 2004, the European Central Bank will need to pursue monetary policy in an enlarged euro zone. I empirically investigate the role of banks in monetary policy transmission in the accession countries. Banks are of major importance for the financing of firms and thus the adjustment of their lending in response to monetary polic...

The recent debate on the impact of capital regulation on bank behaviour shows that risk exposures of banks might in‡uence the amount of loans newly granted to the non-…nancial sector. The paper analyses implications of this relationship for the role of …nancial stability analysis in the conduct of monetary policy. This role stems from the fact that the …nancial instability can in‡uence the mone...

Monetary policy transmission mechanism has a complex process since its implementation it involves changes on banking sector, economic actors, the length of time in implementing policies, as well monetary channels according to condition country. This study aims examine how consumption and investment respond shocks that occur Indonesia. These results indicate impact due interest rates is larger m...

This paper re-examines the evolution in the US monetary transmission mechanism using an empirical framework that incorporates substantially more information than the standard trivariate VAR model used in most previous studies. In particular, we employ an extended version of the factor-augmented VAR proposed by Bernanke et al. (2005). Our extensions include allowing for time variation in the coe...

iranian banks can not freely determine their interest rates in the financial market. this characteristic causes banking industry unable to perform their duties of financial intermediaries in the transmission mechanism of monetary. in these circumstances, monetary shocks will have a significant and high effect on the alternative markets (like stocks and housing). in this study, we used dynamic s...

The considerable amount of research in recent years on New Keynesian, open-economy models -models with nominal price rigidities and intertemporally maximizing agents -has yielded fresh insights for what Alan Blinder has called the “dark art” of making monetary policy. The literature has made its greatest contributions in understanding the transmission of shocks across countries, exchange rate p...