We analyze monetary conditions in US asset markets — corporate equity, real estate, Treasury bond and corporate & foreign bond — from a market specific perspective, proposing the concept of market leverage. Market leverage measures the average leverage of all asset holders in a particular asset market. The concept builds on an accountingbased network that links balance sheet leverages of asset ...

There is an apparent theoretical discrepancy between the effects of monetary policy shocks on economies with differently competitive banking sectors. We employ cross-country data to investigate this hypothesis with two different approaches. First, using aggregate data we analyze the correlation between two indices: (i) a cumulative impulse response function providing an index of the effect of m...

This paper uses quarterly data from 1980 to 2004 for ASEAN-5 founder countries to estimate the weight of the Augmented Monetary Conditions Index (AMCI), and identifies the key transmission mechanism paths using Pesaran and Pesaran’s (1997) ARDL procedure, and Pesaran et al.’s (2001) bounds procedure. The roles of credit and asset price channels are assessed for aggregate demand conditions and i...

This paper is the first of two from the Monetary Services Indices (MSI) Project at the Federal Reserve Bank ofSt. Louis. The second paper, Working Paper 96-008B, summarizes the methodology, construction and data sourcesfor the an extensive new database of monetary services indices, often referred to as Divisia monetary aggregates, for the United States. This paper surveys the microeconomic theo...

The study focuses on assessing the Monetary Condition Index (MCI) in Pakistan, which measures tightness or easiness of country's monetary policy. It analyzes impacts interest rates and exchange inflation GDP growth, using time series data from 1975 to 2020. is calculated by data, employing annual set Two different methods are applied find weights rate rate, one Principal Component Analysis othe...

This paper assumes that a central bank commits itself to maintaining an inflation target and then asks what measure of the inflation rate the central bank should use if it wants to maximize economic stability. The paper first formalizes this problem and examines its microeconomic foundations. It then shows how the weight of a sector in the stability price index depends on the sector’s character...

implementation of monetary policies and adjustments in liquidity are the most important tools of the central bank of iran used in structural reforms in the banking industry. this policy influences the efficiency of the monetary policy through its impact on bank credit channels. in this study we used dynamic stochastic general equilibrium models as one of the most innovative approaches to moneta...